At midday today the Bank of England announced an increase in the base rate from 0.25% to 0.5%. This is the first rise in a decade and it looks like it could signal the end of ultra-low interest rates.
What does this mean to you if you have a mortgage?
those on fixed rate wont see a change, however, if your rate is due to end in the next 6 months you want to contact us to review your options. If you have a variable or tracker rate, your payments will probably rise by, potentially 0.25 percentage points. Your mortgage lenders will be announcing any such changes imminently...
If you are on the lenders standard variable rate, you are likely overpaying. The average SVR is 4.5% so you could still opt for a far better rate by contacting us to check your existing lenders product range and reviewing the whole of market for comparable rates.
How do lenders set the rates?
Rates are set based on city swap rates, these are long term predications of interest rate trends, these have been looking to increase, the rates for new fixed deals has already started going up.
What should you do now?
If you dont know your current mortgage rate, find your paperwork and check if its fixed or variable, when it expires and if there is a redemption penalty to move.
contact us if you are concerned or simply want a quick check on your mortgage options, it is never a waste of time if it gives you peace of mind, it might even save you money.
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