Yesterday saw the Bank of England base rate rise for the first time in 10 years. They have risen from 0.25% up to 0.5%. But what does this mean for people trying to obtain a mortgage?
Initially, it will only affect the people with variable or tracker rate mortgages. There is an estimated 40% of mortgages within the UK are on either a variable or tracker rate mortgage. This will put an increase of £20 per month for every £100,000 borrowed. However, we could also see new fixed rates rise as well.
Further down the line, this interest rate increase should then benefit those who save. It will give them a better return on the money they are trying to save. Also, it will give them a better chance of saving up a deposit for a mortgage as this can be one of the biggest stumbling blocks.
If you think you need help because of the interest rate changes, fill in the form to the right of the page or alternatively give us a call on freephone 0800 103 2655 or 01332 821 340.