Bank of England have increased the base rate of interest by a further 0.5%, to 5.0%.

The Bank of England have announced another increase in the base rate of interest today. The rate has risen by 0.5% from 4.5% to 5.0%. This rise has been widely expected following the news earlier this week that inflation was still running at 8.7% in May.

The cost of mortgages has been rising recently as this was expected and the rise had already been priced into the borrowing costs of the lenders. If your mortgage is on a variable rate at the moment, then your lender will be in touch with your new rate and payment shortly. If you are currently on a fixed rate mortgage, then there won’t be any immediate impact on your mortgage payments.

As always, please get in touch with the Barlow Irvin Financial Services 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.