For the first time in a more than a decade the Bank of England decided to increase the base rate by 0.25% up to 0.50% (read the Bank’s article here).
This means that an estimated 40% of mortgage borrowers have seen their first rate rise. So, what does that mean in monetary terms ?
If you were to have a £100,000 mortgage outstanding with 25 years remaining it would mean a £13 per month increase in your mortgage payments.
It is expected that there are further rate rises to come with experts predicting the base rate to rise to 1% by 2020.
Lenders were predicting the rate rise and a number of the major lenders increased their fixed rates prior to the announcement on 2nd November.
The majority of the mortgage lenders immediately increased their Standard Variable Rates meaning that any of their borrows who were sitting on that rate (there are currently millions) would see an immediate increase to their mortgage payments.
With the UK still to negotiate the exit out of the EU there is a lot of uncertainty for homeowners.
It is also estimated that there is £208 Billion currently owing on unsecured debt.
However, it isn’t all bad news…
There are still a lot of low interest rates being offered by lenders with incentives to switch your mortgage if your lender is not prepared to offer you a competitive rate.
There are also a lot of great deals being offered for those wanting to purchase their first property, move home or buy a property for investment purposes
Speaking with a Mortgage Broker could save you money and help you understand what options are available from not just one lender but from the whole of the market.
They will do all the leg work for you by comparing what is the best option to suit your particular circumstances.
At Manchester Mortgages were able to meet with you either at our new Modern offices or at a time and place convenient to you.
One of our industry experienced Mortgage Advisers will get a full understanding of your personal situation and provide you with a full recommendation.
We have been providing Mortgage advice throughout Greater Manchester since 2001 with 100’s of our customers recommending us to family members, work colleagues and neighbours.
So please contact us on 0161 706 0242 and see how we can help you with your situation.
