Today, the Bank of England has announced that interest rates are to be held at 5.25%
This is very notable as it follows a long period of consecutive interest rate rises by the Bank of England that have pushed up the cost of lending money in the UK to the highest level seen in many years.
The Bank of England has previously been raising interest rates to control inflation levels by making it more attractive to save money and reduce consumer spending by increasing the cost of borrowing money. Latest data indicates that inflation is now starting to reduce from the highs seen earlier this year, standing at 6.7% for the latest figures from July.
How will this affect me?
With the first announcement that interest rates are being kept as they are, today’s news may be an indicator that the continuing rise in the cost of borrowing money is potentially starting to flatten out and stabilise once more.
We have been accustomed to regular rises in interest rates since late 2021, so this decision could be seen as a positive sign for potential homebuyers and those seeking remortgages to find more affordable rates. However, it is important to bear in mind that the cost of borrowing money has risen considerably in recent years, so most homeowners are likely to be facing increased monthly repayments when their fixed rate mortgage periods expire.
Let us see how we can help
At this time of great change and turbulence, it’s important to seek professional advice to assist with any queries you may have. There’s an overwhelming amount of information online, and some of it can be conflicting or confusing, so this is where we are here to help you.
We would recommend that you contact us to let us look at your individual circumstances and provide bespoke information to allow you to make educated decisions to meet your financial goals for now and the future ahead.
Mortgage rates could be better than you think. Despite the doom and gloom from the national headlines of prices going up and the rising cost of living, in the mortgage world, things are starting to change, with some encouraging announcements recently that certain lenders are announcing fixed-rate mortgage products at lower rates than seen earlier in the year.
If you’ve been thinking of moving home, or if you have a remortgage coming up and you’ve been dreading what the potential costs could be, let us see how we can help. We have the ability to search across the market and can access deals that aren’t found on the High Street, matched to your exact circumstances and financial situation. You might be surprised at what we can find – so please don’t be put off by what you read online and book an appointment with us.
Please note, your home may be repossessed if you do not keep up repayments on your mortgage.
All the information in this article is correct as of the publish date 21st September 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Sources:
Office of National Statistics (2023) Inflation and price indices. https://www.ons.gov.uk/economy/inflationandpriceindices [Accessed 18 Sep 2023]
2. The Guardian (2023) Mortgage rates ease as Bank of England’s bitter medicine shows signs of working. Available at: https://www.theguardian.com/business/2023/jul/30/mortgage-rates-ease-as-bank- of-englands-bitter-medicine-shows-signs-of-working [Accessed 18 Sep 2023]
