- Salli Anstey
What would an interest rate rise mean for homeowners?
What do we know about an imminent rate rise?
There are increasing indications from the Governor of the Bank of England that interest rates will be rising, and that could happen as soon as next month. In this article we will explain whether you could be affected and what it would mean for those who hold a mortgage.
To give some context, the base rate has been held at an all-time low of 0.25% since August 2016 when it moved from 0.5% – where it had stood since March 2009. Previously, a rate rise was predicted for next year at the earliest, however with the cost of living rising, the Bank may choose to increase interest rates sooner.
I have a mortgage – how do I know if I will be affected?
If you are currently on a fixed rate mortgage you will be protected from the rate rise until your current fixed rate ends. When that time comes, Private Wealth Mortgages can review your circumstances and options for moving to a new rate, and help manage that process for you.
If your fixed rate only has a few months left, we may be able to secure you a new rate in advance of the current deal ending, so do give us a call if this is the case.
If you have a mortgage rate which tracks the Bank of England base rate, or are on your mortgage lender’s standard variable rate, then you will be affected by a change in the interest rates.
How can I prepare?
You may want to consider a fixed rate but it could be that your plans or circumstances indicate that staying on your present rate is preferable. At Private Wealth Mortgages we offer a free no obligation consultation to discuss the options on your present mortgage and advise on the best course of action.
Changing your mortgage doesn’t necessarily mean changing lender or incurring additional costs – we can advise on options with your present lender as well as considering what is available elsewhere.
For more information and advice on your individual circumstances, get in contact with the Private Wealth Mortgages team on 01403 270006.
Your home may be repossessed if you do not keep up repayments on your mortgage.