You may hear people nervously talking about an increase in the Bank of England Base Rate, but what effect could this have on you?
If you’re on a Fixed rate or Capped mortgage you don’t really need to worry, your interest is fixed for a period of time and therefore your monthly mortgage payments will not increase, or in the case of a Capped mortgage, will not increase beyond the fixed ceiling. If your Fixed Rate deal is coming to an end, now may be a good time to start looking at the options available to you.
If you’re on a Standard Variable rate (the rate your mortgage automatically reverts to once any deal has ended), you will see an increase in your monthly mortgage payment. The same can be said for a Tracker, Offset or a Discounted rate mortgages. The rate that you are tracked or discounted against will rise and therefore the amount you pay monthly will increase.
If you’re unsure what type of rate you are on, you could check your mortgage paperwork, contact your mortgage broker or speak to your lender direct.
Please note the content of this blog is for guidance purposes only and does not constitute for professional advice. Contact us today at email@example.com or by calling 01473 216950.