The Bank of England has just announced a base rate rise to 0.50%. This is as most had predicted….
The base rate last changed in August 2016, when it was cut to a record low of 0.25% in the wake of the Brexit referendum. Before that, it had held steady at a historically low rate of 0.50% since March 2009.
Low-interest rates have been instrumental in the growth of the property market since the credit crunch. It has also been very helpful for making home buying more affordable for first-time buyers. However, the new current rate increase to 0.50% doesn’t need to spell doom and gloom.
A rate rise will mean that anyone on a variable or tracker rate mortgage will have higher mortgage costs. However, an increase of 0.25% is unlikely to cause a huge impact on your household finances if you haven’t overstretched yourself on your mortgage borrowing.
Mortgage rates available now still look amazing and provide affordable payments to those looking to remortgage or buy a home.
We recommend that if you’re on the banks standard variable or tracker rate mortgage, or if you’re fixed term mortgage is ending soon, that you seek independent mortgage advice on how to get the best deal for your circumstance. Contact the experts at Number One Mortgages for help with your objectives – 01273 736536.