Do you know what a rate rise could mean for you?

If the Bank of England (BOE) base rate does rise before the end of the year what impact could this have on families?
Any borrower who is on a variable rate mortgage deal which includes tracker rates, discounted mortgages and Standard Variable Rate will be worse off from a BOE rate rise.
To put it in monetary terms for someone with a 25 year repayment tracker mortgage, with a loan of £250,000 currently paying 2% interest, if the base rate goes back to 0.5% your payments will rise by around £30 a month.
Thankfully the vast majority of mortgages taken out since 2015 were taken out on fixed rate deals. Anyone currently on a fixed rate mortgage will not feel any impact of a rate rise until their fixed rate comes to an end.
Borrowers who are already finding themselves financially stretched each month could very well struggle with an interest rate rise.
The Financial Conduct Authority has brought in a number of changes in the mortgage market since the credit crunch to ensure lenders did not lend to people who would be unable to cope with future rate rises This suggests that the majority of borrowers would not fall in to difficulties. However changes in circumstances can significantly alter financial budgets, if you have any concerns,, now is the time to seek advice, call us today on 01202 937444 and speak to one of our expert mortgage consultants.