On Thursday 3rd February 2022 the Bank of England increased interest rates to 0.50%. This is the second interest rate increase since December.
The base rate, set by the Bank of England Monetary Policy Committee, is the main driver of rates and Mortgages and saving products in the UK.
Generally a higher base rate means a increase in the cost of Mortgages. The increase was in response to rising inflation costs which hit 5.4% in January 2022.
WHAT DOES IT MEAN FOR MY EXISTING MORTGAGE ?
If You are in a fixed rate mortgage then there will be no change to your mortgage payments. If However your Mortgage is linked to the Bank of Englands base rate or you are on your lenders current standard variable rate this will mean a increase in your mortgage payments. Added to the expected cost in energy prices and food this can put a strain on peoples budgets/finances
If Your fixed rate is due to end in the next 4 months you will revert to the lenders standard variable rate which again will mean a increase in your mortgage payments unless you think about doing something now and preparing for any potential increase
WHAT CAN I DO TO ENSURE MY PAYMENTS DO NOT INCREASE SIGNIFICANTLY ?
Contact Manchester Mortgages at firstname.lastname@example.org or call us on 0161 706 0242 where you can speak to one of our industry experienced advisers who can tell You what Your options will be by either moving to a new lender or what your existing lender will offer. The service offered is FREE no obligation.
Manchester Mortgages for the last 20 years has been helping 1000’s of clients throughout the Greater Manchester Area and beyond in managing their mortgage accounts and providing them with options that there existing brokers/mortgage lender would not have considered.
We are a Whole of Market Broker and work on behalf of our clients not the lender