Today, the Bank of England announced its 12th consecutive interest rate increase taking the Bank rate from 4.25% to 4.5%.
If you have a mortgage or are planning on getting one, don’t panic!
While we can’t predict how this latest rate increase will impact mortgage rates, the last rise in March (from 4% to 4.25%) didn’t produce a jump in fixed-rate mortgages. Today, the lowest five-year fix is 3.74%, and even if your existing mortgage runs for another six months, you can apply for and hold that rate until then.
Unfortunately, if you have a variable rate or tracker mortgage, your mortgage payments will increase following the latest interest rate rise.
As always, our advice to you is to secure a mortgage early. Being ahead of the game means you can lock in rates before any potential rises yet also benefit if the rate falls before your new mortgage starts.
In better news, Skipton Building Society has launched a 100% mortgage, making it easier for first-time buyers to get on the property ladder. The mortgage is open to all first-time buyers who have been renting for 12 months.
If you’re worried about their mortgage situation or would like help accessing the right deal, please get in touch.
The next Bank of England interest rate decision will be announced on 22 June 2023.