The latest announcement from the Bank of England to increase the base rate to 1.75% marks the sixth consecutive rate rise.
The Bank of England has just announced that the base rate is increasing to 1.75% in a bid to combat rising inflation. The Bank has just announced the sixth consecutive base rate rise since last December, with the rate increasing from 1.25%.
A spokesman for the Centre for Economics and Business Research said a half-point increase was what he was expecting, even though we haven’t seen an increase of this scale for almost 30 years.
Approximately 80% of homeowners are on a fixed-rate mortgage deal, meaning their monthly payments will remain the same for the term of their fixed-rate deal.
However, if you’re on a standard variable rate, your payments may go up if your lender chooses to pass on the increase to you.
If you’re on a tracker rate, which moves in line with the Bank of England base rate, then your monthly payments will go up.
If your fixed-rate deal is due to come to an end in the next six months, it’s imperative that you contact us now so that we can source a competitive deal when your current fixed-rate term ends.
Time to shop around
The more time we have to shop around on your behalf, the more likely we are to find you a competitive rate.
If you’re on a fixed-rate deal that’s due to end in the next 12 months and you’re worried about rising interest rates in the longer term, talk to us. Although it may be too early for us to start searching for your next mortgage, we’re happy to offer help and advice.
For instance, depending on your age and circumstances, you might be able to extend the term of your mortgage. Or switch to an interest-only deal. In both cases, your monthly payments would come down. While we can’t guarantee this is possible for every client, we can look at your options. In challenging times, it’s essential to have access to good advice and expertise. You can rely on us. We’ll give you clear and helpful advice when you need it most. Contact us now.