Are 0% mortgages a possibility?

Posted: 10/7/2020


With the Bank of England rate now 0.1% is it possible that we could see 0% mortgages? Well, it is possible, especially if the BOE rate goes negative. Negative interest rates are where government banks charge commercial banks for holding thier excess funds, instead of paying those banks interest. The idea behind it is that it encourages banks to lend more (by offering exceptionally competitive rates, even 0%) thus stimulating the economy. But negative interest rates are pretty rare and are reserved for when economies are really struggling. Who knows where we may be in 12 months of course. And, there are lots of serious issues that come with negative interest rates such as deflation so we don't want really to go there. Currently, there are mortgages available from just 1.13%, but that is an initial rate and with most, they rise after a set period. But overall that type of mortgage still works out at just over 3% - cheap borrowing! If you are interested in selling you may also be interested to know that our sale fee is just 0.5% including VAT - which is less than half of waht most estate agents charge.

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