Bank of England increases interest rate – What does this mean for you?

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Last month The Bank of England increased rates from an all time low of 0.1% to 0.25%. A surprise, maybe, but it’s still an historic low given that nearly 20 years ago the Bank of England rate was at 5.75%!

But this is the first rate rise in 3 years, what could happen next?

Here we talk about how this increased rate effects your mortgage.

What does this mean?

In the mortgage world this means that those on a tracker mortgage or a standard variable rate (SVR) mortgage will be affected by this increase. It can also affect those who’s fixed rate mortgage may be due to expire soon, or perhaps has already expired and has been moved to the SVR. It may be that you have put off the task of re-mortgaging or it’s just slipped through the net as time passes by.

But let this news be the push you need to look at your mortgage, your rates insurances. Even if you are on a fixed rate, a more suitable mortgage may be available to you.

Did you know you can secure your new mortgage rate up to six months before your current deal is due to end?

The rate rise will not only effect those with current mortgages or those due to re-mortgage. It could be that you’re wanting to move, or you are a first time buyer and the increase has left you feeling uneasy to say the least! But here at TMQ we have a huge range of lenders available who can offer you a competitive mortgage rate to suit your needs, so that doesn’t seem too scary after all.

This past month at TMQ HQ we’ve also been taking the time to call each client to discuss such things as rates, and well as insurances, to make sure you’re happy with your current provisions and to see if we can shake things up a bit and save you money on your mortgage. That’s our biggest goal, right? To help you get the best deal going.

How will this impact my mortgage?

As mentioned above, this rate rise will most definitely affect those of you who are on Tracker Mortgages and Standard Variable Rate (SVR) Mortgages. You can expect to see a rise on your mortgage within a short period of time. Let this spur you on to check if you can save by getting a better mortgage deal.

Even for those of you on a fixed rate mortgage, you can always benefit from a review on your current deal, whether your mortgage is soon to expire or not – a lot of people like to reassess their finances in the New Year; household bills, Netflix, that thing you signed up for but never use and you’ve always forgotten to cancel… have you ever added your mortgage to that list?
And if you’re still waiting to get on to the property ladder, we really are here for you, we can discuss with you your worries and put your mind at ease and help you see that this is still a fun and exciting process…

Talk to us today to reevaluate, re-mortgage and get started on your exciting home-buying journey!