MORTGAGE RATE INCREASES – What This Means For You

So the bank of England has decided to raise the mortgage interest rate by 0.25 per cent to 0.75 per cent.

The decision was made following a vote by the Monetary Policy Committee at noon today, 2 August, which resulted in a nine to zero vote in favour of a rise. It is the first time the base rate has risen above 0.5 per cent in almost 10 years.

This mortgage rate rise was generally expected but what does this mean for some borrowers out there?

Yes it is the holiday season and most readers’ thoughts will be far from focusing on mortgages. Sun sand and sea will no doubt be prevailing! Hence this might be the best time to give your mortgage rate situation some thought. Although many borrowers do appear to have looked ahead and have sought to fix their mortgage rate, if you have so far failed to do anything now is a good time. Rates have been slowly drifting upwards since the run up to the last rate hike, and fixed rate options are still very competitive. Those most vulnerable to rising rates will be borrowers on their lender’s standard variable rate. If this is you please do give us a call or drop us a line.

Not only might we be able to save you money on your mortgage, we might be able to help the future appear just that little bit more secure enabling you to relax on holiday. After all it is August!