Bank of England Base Rate Rises by 0.25%
The Bank of England have increased the Base Rate to 5.25%, this is the 14th consecutive rise. At first glance this is not good news, certainly if you have a base rate tracker mortgage, but this is half what experts were predicting until we saw a drop in inflation in the last couple of weeks!
Most lenders have been reducing their product rates as they factored in a higher rise in the Base Rate before releasing their new products to the market. Check out the Sonia swap rate for an idea of the price lenders are buying money at for mortgages.
Overall, the base rate is predicted to remain above 5.25% for all of 2024. With the cost of living crisis in full swing it has never been more important to protect yourself by discussing your situation with a Mortgage Broker.
What does this mean for you?
The slowing down of rate rises due to a downward trend in inflation is good news and shows borrowers that there is some light at the end of the tunnel!
Depending on your situation and circumstances you may find your mortgage has gone up immediately, a base rate tracker for example. If you’re on a product like that now is the time to reach out and speak to a Mortgage Broker to see what can be done to lower your monthly payments by considering other product types.
What should I do now?
There are around 800,000 fixed rate mortgage products coming to an end this year, if you are one of those now is the time to act and secure a product that’s going to be affordable for you going forwards.
If your mortgage product is within six months of ending you can secure another now. Having secured a new product you can feel comfortable that you have something lined up, if the rates are cheaper when your existing product comes to an end you can compare what you have secured now with what’s available at the time and see which is cheaper.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.