As widely anticipated, the Bank of England, have just announced a rise in the bank base rate for the first time in a decade, an increase of 0.25%.
Home owners have enjoyed an incredibly low interest rate for many years, so it was inevitable that rates would rise at some point!. Whilst this may ring alarm bells for those of you with a mortgage, there is no need to panic!
Firstly, if you have a fixed rate mortgage, then your current repayments will remain unaffected.
Secondly, let’s keep this in perspective – interest rates are still unbelievably low. A 0.25% increase on a mortgage of £250,000, over 25 years, equates to an increase on your monthly payment of just under £30, so hopefully, this will not cause too much financial hardship.
If you have a variable rate mortgage, or a tracker, it may make sense to explore the possibility of getting a fixed rate mortgage now! This could save you money and there are still some very attractive rates out there.
If you would like to look into this in more detail, please call us on 01923 296747 and we will put you in touch with a mortgage expert who can look into your options for you.