In light of the announcement today that the Bank of England has increased interest rates to 1.00%*, we wanted to write to you to explain how that might affect your mortgage.
The good news is that if your mortgage is on a fixed rate, your monthly repayments are unaffected. Those with fixed rate mortgages are likely to be affected once they reach the end of their current deal. An interest rate rise could make remortgaging more expensive.
If you have a variable rate tracker mortgage that is linked to the Bank of England base rate, you are likely to see an immediate impact on the amount you repay. Those on a standard variable rate (SVR) could see an increase which is decided by the lender. If you are unsure, it is worth checking your mortgage terms and conditions in your mortgage offer document.
If you are on your lenders SVR, please ensure that you get in touch as you could be paying more than you need to be.
For those readers who are still on a variable rate or are coming to the end of their fixed rate period, now is a good time to seek professional mortgage advice and let us talk you through the options available to suit your circumstances.
*Source: Bank of England (2022) https://www.bankofengland.co.uk/ (Accessed 05/05/22)