Bank of England increased the base rate to 4.5%
On 11th May, The Bank of England increased the base rate to 4.5%. This is the 12th time in a row that the base rate has risen from it’s lowest point in December 2021. Adam Nanson, Managing Director at Your Mortgage Expert in Salisbury discusses what this means for home owners.
Why has the base rate increased?
“With inflation still hitting over 10%, it was inevitable that the base rate was going to increase at the meeting on 11th May. But, the inevitability doesn’t make the decision any easier for home owners worried about their mortgages or monthly bills.
“If you’re on a fixed rate mortgage, you don’t need to worry about a rise in interest rates at the moment. Your mortgage rate and monthly repayments will remain the same for your fixed term period whether interest rates rise or fall.
“However, if you are on a tracker mortgage or you are on the Standard Variable Rate, lenders may increase rates. Meaning you will most likely pay more as a result of the base rate increasing to 4.5%.”
Should I remortgage now?
“It can be tricky for mortgage borrowers to cut through the noise in the current mortgage market. The need for professional mortgage advice at the moment is more important than ever. And we would advise you to get in touch with us to discuss your options.
“If you are looking for a new fixed rate mortgage there isn’t always a direct correlation between the base rate going up and fixed rates increasing. In April, despite interest rates rising, lenders were still cutting the rates on their fixed deals. The fixed mortgage rate you’ll get varies depending on which lender you choose, your deposit size, the price of the property and the length of the mortgage term.
“If you’re on a tracker mortgage or the Standard Variable rate and you’re concerned about the base rate rise it might be worth looking to see if you would save money by switching to a different deal.
“Whether you are looking for a fixed rate or a tracker, we would advise you to get in touch with us. We will take the time to research all the options to ensure you make the choice most suitable for you and your circumstances. We research mortgage deals from across the market and keep on top of all the rate changes and mortgage product launches.”
To speak to a member of the mortgage advice team about the news that the Bank of England increased the base rate to 4.5%, ring us now on 01722 322683 or complete a contact us form and let them know when we can call you back.
The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. We cannot be held responsible for something that was correct at the time but subsequently changes or goes out of date. For further information, contact Your Mortgage Expert on 01722 322683.