The forecast for the UK housing market since the historic Brexit vote has reached both ends of the spectrum by numerous market experts. This has led to uncertainty and many days of consumer confidence issues which have yet to subside. Those in the midst of buying or selling a property are now acting which has led to an increase in activity and the motor once again firing on all cylinders. The latest word from the Bank of England is that the base rate could once again be cut even further to possibly 0.1%.

This is excellent news for those searching for a house and looking to obtain a new mortgage. If the base rate is cut, mortgages could carry interest rates as low as 1%. Some experts even believe rates from lenders could go below 1%. This would undoubtedly give the market a much-needed boost.

Lenders have been handcuffed to one another in a competitive battle of who can go the lowest regarding home mortgage loans. A cut in base rate will likely lead to even heavier competition which is only beneficial for those in search of a home mortgage.

Bernstein analysts commented on the possibility of a rate cut and what it will ultimately mean for those looking for a mortgage, saying: “If your credit rating is fine, you are probably going to get a cheaper mortgage from either a bank with excess deposits or ones desperate to grow their book – that’s sub 100 basis points (1%).”

Through the years, around 75% of all lending has been controlled by less than 7 major players. With a possible cut to interest rates once again, these lenders will likely be quite active in their efforts to secure more borrowers in the coming months.