If you're looking to buy a new home or get a better deal on your mortgage, now is the perfect time. Recent comments by the Governor of the Bank of England have hinted that interest rates are set to remain at their record low until at least 2014. And, other experts believe that rates will stay low for even longer - perhaps until 2017. So, isn't it time to take advantage of cheap mortgage deals? Interest rates have been at their record low of 0.5% for three years and it's never been cheaper to borrow money whether you're a first-time buyer or you're looking to remortgage.
Comments from the Bank's Governor, Sir Mervyn King, recently hinted that the base rate will stay at its historic 0.5 per cent low until at least 2014. Sir Mervyn claimed that any increase in interest rates would drag the UK back into recession. The Governor says the economy is "moving in the right direction" although it would "zigzag" in and out of growth in 2012.
Other experts have also predicted that interest rates will stay low for the foreseeable future. Howard Archer, of IHS Global Insight, says: "We are sticking to our view that interest rates will not rise until at least late 2013 and could very well stay at 0.5% until 2014."
And the Centre for Economics and Business Research believe the base rate would stay at 0.5% until 2016. But why are low base rates good for you?
If you're thinking of getting onto the property ladder, low interest rates make buying your first home more affordable. And, they also help you and your family save money if you're considering a remortgage.
As Eddie O'Gorman, of investment managers The Way Group, says: "The combination of an extended period of the record low base rate and falling inflation will boost the economy and no doubt tempt more buyers and movers into the property market."
Recent research from Halifax has found some mortgages for new borrowers were the most affordable for 14 years. Again, this is thanks to record low interest rates. Committing to a new mortgage now could see your payments remain at record lows until at least 2016 or 2017. With recent figures from Halifax also finding that it's now £1,400 a year cheaper to own a home than it is to rent, now is the perfect time to get on the property ladder.