As we expected the BOE has raised the base rate for the first time in 10 years, it was moved from 0.25% to 0.5%.
This is only a small increase and will not have a massive impact on most households, however is the first raise of many, are we seeing the start of moving back to normality after a decade of historically low interest rates?
The raise will impact those on a variable rate, lenders normally increase their standard variable rates almost immediately. Mortgage rates for those looking to take out a mortgage will also rise.
Those households on a fixed rate mortgage will be currently unaffected but for those on a tracker mortgage, discounted rate or the lenders standard variable rate can expect their mortgage payments to increase.
A rise in the base rate does not always mean your rate will increase as lenders can alter their Standard Variable Rate at their own discretion, however a bank rate movement does normally get passed on by the lenders to mortgage holders.
If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth