09 Jan 09.01.2018 What does the UK interest rate rise mean for your mortgage and the property market?
09.01.2018 What does the UK interest rate rise mean for your mortgage and the property market?
This means that those on variable or tracker mortgages and those, whose fixed-rate mortgage deals are coming to an end, will see their monthly expenditure increase. At the same time the cost of living and stagnating wages are really putting household budgets under pressure.
Those already on a fixed-rate deal won’t see any changes until they reach the end of the fixed-rate term. However, those looking for a new fixed-deal should act quickly in order to obtain a good rate.
On tracker-rate deals, the rate you pay moves up and down in line with the Bank of England’s Bank Rate and with the Bank Rate raising the mortgage rate will immediately rise.
Standard variable rates
For millions of borrowers on standard variable rate now is the best time to re-mortgage and switch to another deal or lender, whilst those deals are still as low as ever. A rise in Bank Rate does not have immediate impact on standard variable rates, however, banks can alter those at their discretion and Bank Rate changes will inevitably impact the borrowers very soon. Indeed, most of the mortgage providers have confirmed the increase of their mortgage rate in the first week of December.