Bank rate rise to 4% – Do you need to remortgage soon?
Thursday 2 February, 2023
The Bank of England has again announced that there will be a further rise in the interest rate as it continues its fight against the rate of inflation. The base rate increase of 0.5% to 4% represents the 10th increase in a row by the Bank of England.
The additional rise in interest rates will have the knock-on effect with standard variable mortgage rates rising. It will therefore also affect the mortgage deals available on the market. The types of mortgages affected will include the deals available to first time buyers but will also affect those looking to remortgage and landlords looking for buy to let mortgages.
What is my new mortgage rate?
If you are on a variable rate mortgage or a tracker mortgage your rate will be affected by the interest rate increase. If your mortgage deal has come to an end and you have moved to your lenders standard variable rate you will probably be paying a higher interest rate than the bank base rate. For example if your standard variable rate is the bank base rate plus 1% you will be paying 5%.
Danny Garner, Mortgage Broker in Harlow and North London said:
“As we see the Bank of England continue to raise the interest base rate, we are likely to see the impacts affecting the mortgage deals that are available. This will mean that anyone with a fixed mortgage that is approaching the end of its term, or anyone looking for a new mortgage really should seek professional advice as soon as possible to help secure the most suitable mortgage deal.”
Danny continued: “Here at Thomas Oliver we strongly recommend that anyone in this position should speak to one of our team of mortgage advisers to discuss their specific financial circumstances and any concerns that they may have”.
If you would like to find out which mortgage deal will be the most fitting for your individual situation, then please call us on 01707 872000.
