Base rate increase: What it means for you

Base rate increase: What it means for you hero
Another base rate increase has been announced as the central bank continues to battle inflation.

The Bank of England has increased the base rate to 3.5% - up from 3.00%.

However, unlike the past few base rate changes which resulted in higher mortgage pricing, lenders were prepared.

With the increase predicted, lenders have been reducing rates in the run-up to the rise.

Market analysis shows that the pricing of fixed-rate mortgages, which soared after the mini-Budget, continues to drift slowly down, with five-year fixes breaching the 4.5% barrier this week and predicted to potentially drop below 4% in the new year.