Interest Rates Increased Again By 0.25% - Leaving the Base Rate At 5.25%.

Interest Rates Increased Again By 0.25% - Leaving the Base Rate At 5.25%.

The Bank of England (BoE) has announced an increase of 0.25% to its Base Rate this month. This is the 14th consecutive rise and has pushed interest rates to 5.25%, which is the highest they’ve been for 15 years.

What does this mean?

These changes in the Bank's Base Rate will impact the amount of interest you pay on loans, including mortgages. Therefore, if your fixed-rate mortgage is coming to the end of the term, your payments will almost certainly increase.

Richard Donnell, Executive Director of Research Zoopla) States:

“For homeowners and would-be buyers who are impacted by mortgage rates, it’s important to note that the impact is not uniform across the UK. Higher mortgage rates hit harder in higher value markets in Southern England where a larger deposit and income are required to buy with a mortgage. In contrast, in the north of England and Scotland, house prices are still rising as the impact of higher mortgage rates is less pronounced. In certain areas in these regions, it’s also still cheaper to buy than rent at 5.5% mortgage rates.”

If your mortgage is about to expire, you've probably already begun to consider the rate you'll be offered on your next loan. It is best to get some up-to-date mortgage advice which is available in the branch. Click here to contact your local branch to set up an appointment with one of our mortgage advisors.

It is currently anticipated that the Base Rate will peak at around 5.75% in early 2024 and remain there for some time before beginning to fall in the second half of the year.

The next decision on interest rates will be announced on 21 September 2023.

Sources: Rightmove, Propertyindustryeye