The Bank of England have raised the base rate from 0.25% to 0.5%. It’s the first rate rise in a decade; the last increase occurred in July 2007.
What a base rate increase means for your mortgage
- Owners on a fixed-term mortgage won’t see an increase
- Owners on a standard variable rate (SVR) are likely to see an increase
- Owners on a tracker mortgage will definitely face an increase
This may be the first rate rise in over ten years, but 0.5% is still hugely lower than the historic ‘norm’ for the base rate.
Ultimately in the challenging post-Brexit/Trump market with stagnating prices, the news that the cost of borrowing is rising is unwelcome. But with just a 0.25% increase, it’s a manageable increase – and certainly no crisis.
If you have any questions about how the base rate change will affect your mortgage, please contact us.