Breaking: Mortgage Rates have Risen!

For the first time in more than 10 years the Bank of England has raised interest rates.

The official bank rate has been lifted from 0.25% to 0.5%, the first increase since July 2007 when rates hit 5.75%. The move reverses the cut in August of last year – made in the wake of the vote to leave the European Union. Almost four million households face higher mortgage interest payments after the rise, but it should give savers a modest lift in their returns.

The main losers will be households with a variable rate mortgage. Of the 8.1 million households with a mortgage, 3.7 million, or 46%, are on either a standard variable rate or a tracker rate. According to UK Finance, the average outstanding balance is £89,000 which would see payments increase by between £11 and £12 a month. The Bank estimates that almost two million mortgage holders have not experienced an interest rate rise since taking out a mortgage. (Reference, BBC News

If you’re on a variable rate or tracker mortgage, you must act now – contact us on 01392 216 344. We can offer the lowest possible remortgage rates – see our latest rates for this information.

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Posted on November 2, 2017 by Neil Henry, in: Industry posts

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