At Benwell Daykin, we try to make our monthly posts to you as knowledgeable as possible, and try to keep them positive, so we apologise for this post about mortgage rates in advance writes Ricky Benwell.
August has seen the Bank of England interest rate increase to 1.75 percent. This is the sixth this calendar year and is another attempt by the Bank of England to tackle inflation, with figures expected to potentially reach double digits by the end of the year!
As of June 2022, the rate of inflation rose for the six time this year to 9.4 percent, with the Bank of England forecasting it to rise past ten percent by December 2022 and remain at these inflated levels throughout the course of 2023.
The Bank of England has as target inflation rate of two percent. In an effort to keep the inflation rate as close to two percent as possible they have been making it more expensive to borrow money and more rewarding to save money. As a result, this could potential affect the mortgage you pay, depending on the type you have.
If you have a fixed rate mortgage, these changes in interest rates will not affect you until the end of your fixed term. However, for those of you on a variable rate, you can expect an increase to the amount you pay and therefore it maybe in your interest to speak to a mortgage adviser or your lender.
Mortgage rates are likely to continue to rise as the base rate rises so, if you have reached a period in which you can assess your options, you will no doubt be better off re-mortgaging today rather than putting this off. This could potentially cost you thousands long term if you delay.
If you need help or information, here at Benwell Daykin we have an in-house mortgage broker, who is happy to provide initial free information if you are confused by what is happening. Our broker has access to a variety of mortgage options for you, including the ability to search the whole mortgage rate market, in an effort to source you the best possible rate.
To book an appointment you pop into or call the 12, High Street office on 0115 990 2007 – or email a member of the team at info@benwelldaykin.co.uk.
