Interest rates rise

Posted on November 7th, 2017

For the first time in 10 years, the Bank of England base rate has risen and, understandably, consumers are feeling a little concerned. So what does it mean for you?

Well, that all depends on what type of mortgage you have.
If you have a fixed rate mortgage you won’t see any change. As the name suggests fixed rate mortgages are set at a certain rate for a fixed period of time and are therefore unaffected by the rate rise. Once that term expires however you’ll revert to your lender’s Standard Variable Rate (SVR).

SVRs and tracker rate mortgages are affected by the Bank of England base rate. When the base rate rises so too do mortgage rates and when it falls mortgage rates fall too. The rate rise means anyone on their lender’s SVR or tracker mortgage could see their mortgage repayments increase. You may have already been contacted by your bank to let you know of any changes.

Despite the rise there are still some very attractive mortgage rates on offer so if you’re concerned about your mortgage now would be a great time to contact an experienced broker, like the team at We Know Mortgages, to find out if you could be on a better deal.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.