11/05/2023
Today we have seen the Bank of England make the important decision of increasing the base rate to 4.5%.
The 0.25% increase is used tackle inflation, encouraging people to save rather than spend or borrow.
This means that the Bank of England base rate is the highest level we have seen in almost 15 years.
But does this affect you and your mortgage?
If you have a fixed rate mortgage, you will see no impact on your interest rate or monthly repayment until your product comes to an end.
However, if you have a variable product and in particular a tracker rate mortgage, you are likely to see the impacts of this.
A tracker product follows the changes made by the Bank of England base rate and therefore, your interest rate will increase accordingly increasing your monthly payments. Other forms of variable products are likely to change too, depending on your lender’s decision to do so, though these changes may not be immediate.
Should you wish to discuss your mortgage options, including exploring fixed and variable rates, please contact our Mortgage Adviser today on 01782 378706.
