Well after 10 years it finally happened – the Bank of England have put the Bank Base Rate up.
The Bank Base Rate only went up by 0.25% but this is a good time to get your mortgage & other finances in order.
It may be November, but a Spring Clean could be just the thing. Both the Bank Base Rate and Rates in the general market are very low still and while they have moved up a little from the very lowest, but this can still make them less than half of most lenders standard rates.
It only takes about 15 minutes to check you eligibility for a new rate. Why not give us a call on 0131 339 2281.
But what impact will a Bank Base Rate rise have?
An interest rate rise of 0.25% has taken the Bank Base Rate up to 0.5%, which is still a historically low figure. Existing borrowers whose mortgages are directly linked to the bank rate will see an instant increase in monthly repayments. For example, for those with a tracker mortgage linked directly to the Bank of England (BOE) rate, for every £50,000 of borrowing on a 20 year repayment mortgage, the interest rate change today would rise their payment increase by £6 per month*.
The prediction, now fact, has already seen lenders withdrawing some of the lowest rates on the market and a rate rise could have a further impact on product availability. So if you’re currently on a standard variable rate or your current deal is about to come to an end, it may be worth reviewing your mortgage needs with an adviser.
*Indicative figure, calculations based on £50,000 borrowed over a 20 year term, with mortgage interest rates changing from 2% to 2.25%.
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