How the Bank of England rate change will affect your mortgage
Responding to inflation hitting 5.5%, the Bank of England's Monetary Policy Committee voted to increase the base rate to 0.75% - an increase by 0.25% on the 17th March. This increase is the third rate increase since December 2021.
If you have a fixed-rate mortgage, the base rate change won't affect your mortgage repayments. However, we keep in touch with our clients throughout the life of your mortgage, and when you're nearing the end of your fixed-rate period, we'll be in touch.
If you have a variable rate mortgage, your repayments will likely change. You should be sent any change details with the rate and date; however, please get in touch if you are concerned or looking to move to a different mortgage.
If you have a tracker mortgage, a change in the base rate will significantly affect your monthly payments as these mortgages' track' the Bank of England base rate, plus a set margin - e.g. the base rate plus 1%.
Finding the right mortgage to meet your needs and circumstances can seem overwhelming, with multiple offers. The good news is we're on hand to help you, explaining what's on offer, what the key features are, and what type of mortgage is most suitable for your circumstances. With average SVRs above 4%, it's essential to remortgage to another deal before the end of your fixed term. As an independent broker, we will guide you through the various options to arrive at an affordable solution that is right for you.
Please note that your home or property may be repossessed if you do not keep up your mortgage repayment.