The Bank of England Interest Rate on the Rise?
What would an increase in interest rate mean for your mortgage?
The Bank of England has announced that it is keeping interest rates at 0.5% but has also hinted at increasing the base rate soon [1].
They did say rates would need to rise “earlier” and by a “somewhat greater extend” than they thought at their last review in November.
The BBC states that around 8.1 million UK households have a mortgage, and of those almost half are on either a standard variable rate or a tracker rate [2].
Those on a standard variable rate or a tracker rate would be most affected by a rate increase, as interest rates on those types of mortgages would likely match any increase by the Bank of England.
Economists think the next rate rise could come as soon as this May. [3]
Save & Secure a Low Rate
“If you haven’t reviewed your mortgage recently and not taken advantage of the record-low fixed rates, you may want to consider it now.” says Aberdeen Mortgage Company Managing Director Scott Kennedy. “Securing a fixed rate deal could be your answer to avoid the impending increase. It all depends on your circumstances and whether a switch is right for you at this moment.”
Aberdeen Mortgage Company can search for remortgage deals on your behalf. We often have access to exclusive deals and lenders that aren’t available on the high street. We compare, so that you can save.
Speak to our expert mortgage advisers about switching mortgage.
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This firm does not charge a broker fee.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.
[1] This is Money, Feb 2018, http://www.thisismoney.co.uk/money/news/article-5363197/More-quarter-indebted-Britons-fear-rate-rise.html[2] BBC, Feb 2018, http://www.bbc.co.uk/news/business-42986729
[3] Money Marketing, Feb 2018, https://www.moneymarketing.co.uk/bank-england-holds-rates-hints-increase-soon/
