The Bank of England Base Rate is the interest rate set by the Bank of England's Monetary Policy Committee and is the rate used to charge other banks and lenders when they borrow money therefore this influences most mortgages (unless they're fixed) and can have an effect on your mortgage payments.
This all depends on the type of mortgage you have, for example;
Fixed rate Mortgages- Your rate will not change however if your fixed rate ends and you decide to go on a standard variable rate, you will be effected by this and may want to look into fixing back in. We can help with you this so why not give us a call for a free consultation!
You are on a standard variable rate- If you are currently on a standard variable rate you may notice an increase in your monthly payments. However, changes to the Bank of England may not always result in a change to your lenders standard variable rate so if you haven't already we would suggest speaking to your current lender to find out exactly how this will affect you.
Tracker rates - With Tracker rates the interest will track the Bank of England rate for a set period of time. This means your monthly payments will go up and down depending on what the Bank of England base rate is. You need to ensure that you will be able to afford the monthly payments should the interest rates increase however if you would like to look at fixing your mortgage rate, we can help you!
If you are concerned about the impact of this news and would like to speak to one of our trusted advisers, contact us now! Book a free Initial Consultation