The Bank of England have today voted again to keep Base Rate at 0.5%, following this month’s meeting of the Monetary Policy Committee.
The Committee, which votes on changes to Base Rate monthly, has voted to maintain the current historic low rate further into a sixth year.
Minutes from this month’s meeting are due to be released in the coming 10 days, but it is widely predicted that there may be some more movement amongst the committee, with two of the nine members voting for an increase last month, and a rate increase predicted towards the end of the year.
“We are edging closer to a rate increase, which was originally predicted for the middle of 2015,” commented Taj Kang, Business Development Director at Contractor Mortgages Made Easy. “Due to low wage increases and tumbling oil prices, this prediction has moved back to the end of this year, or even quarter 1 of 2016.”
The broker is now hoping to arrange some 6,000 mortgages per year, a position that Taj says is very promising for those contractors looking to buy in the near future.
“Due to the influence that we have in the market, and with mortgage rates currently at historically low levels, it is a very positive time for those contractors who are either looking to dip their toe in the property market, or who are looking to upsize in the near future.”
“Historically, Contractor Mortgages were reserved purely for IT contractors and limited almost entirely to those on sizeable day rates, however now even relatively risk-averse lenders such as Nationwide and Leeds Building Society are actively seeking business from Contractors.”
Given recent changes to tax relief on investment property, many contractors had expressed concern over how this would impact on their ability to purchase property. Concerns, says Taj, that are unfounded.
“At a time when there are concerns over the long term benefits of being a Buy to Let landlord, there are fears from many that the mortgage market could be somewhat unstable. We now have the influence and the know-how to help maintain relationships with High Street lenders, and ensure that you are not penalised.”
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