Bank of England have increased the base rate of interest by a further 0.25%, to 4.5%.


As expected, the Bank of England have increased the base rate of interest today by a further 0.25%, to 4.5%. Most analysts expected this, and the feeling is this may well be the peak of this cycle, with rates dropping through the rest of this year as inflation comes back under control. As always, this is not guaranteed, and we can only wait and see if the economy moves in the expected direction.

In terms of mortgage rates, many lenders have increased their fixed rates on offer slightly over the last week or so, but this is response to the general market. I do not expect fixed rates available to be impacted by this base rate increase, as lenders will be looking at a longer-term view on interest rates and have already “priced in” this rate increase, as it has been expected for a while. If you are on a variable rate mortgage, then your rate will increase, and your lender will be in touch to advise of your new monthly payment in the next few weeks.

As always, please get in touch with our award-winning team if you have any questions or concerns around interest rates or the mortgage market as a whole and we will answer them for you.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. 

About the author 

The Barlow Irvin Team

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}