In yesterdays announcement, the Bank of England has taken the step of raising the base interest rate to 5.25%. This marks the 14th consecutive increase as the central bank endeavors to tackle inflation and manage the cost of living. The latest data indicates that inflation is showing signs of receding from the peaks observed earlier this year, with the most recent figures from June indicating a rate of 7.9%.
Impact on Mortgages The rise in interest rates may have implications for mortgage holders. If you have a fixed-rate mortgage, your monthly repayments will remain unaffected during the fixed period. However, when it comes time to remortgage, you may encounter a significant increase in your monthly repayment amount.
For those with variable-rate tracker mortgages linked to the Bank of England's base rate, the rate increase will lead to an immediate impact on the amount you repay. If you are on your lender's Standard Variable Rate (SVR), your monthly repayments may also increase depending on the decision of your lender.
How We Can Assist If you're uncertain about the type of mortgage you hold or have any concerns about how this rate hike may affect you, don't hesitate to contact us. Our team of professionals is here to provide personalised advice and guidance on your mortgage.
Amidst the abundance of conflicting information available online, we can offer bespoke information tailored to your specific circumstances, empowering you to make well-informed decisions that align with your financial goals, both now and in the future.
Discover Better Mortgage Rates
Despite the prevailing negative sentiment in the news about rising prices and rates, the mortgage landscape is evolving. We have recently received positive news from certain lenders who are offering fixed-rate mortgage products at lower rates than earlier this year. If you've been considering moving homes or have an upcoming remortgage, you may be concerned about potential costs. Let us help you navigate through the options. Our market expertise allows us to access exclusive deals not available on the High Street, customized to match your unique circumstances and financial situation. You might be pleasantly surprised by the opportunities we can find for you. So, don't be discouraged by online reports; book an appointment with us to explore your possibilities.
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All the information in this article is correct as of the publish date 4th August 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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