What does another interest rate rise mean for you?

What does another interest rate rise mean for you? hero

The Bank of England raised interest rates for a tenth consecutive time on Thursday.

The rate moves from 3.5% to 4%.

At the same time, the Bank of England was optimistic and said inflation may have peaked and a recession in the UK would be shorter and shallower than previously feared.

What does it mean for your mortgage?

Simon Gilvey of Broadland Consultants said the increase had been anticipated by lenders, reassuring those with a mortgage.

Simon gave Sowerbys this advice:

"The February rise in the base rate was long anticipated, and many mortgage lenders had already priced its effects into their available deals.

"Positively, early mortgage market data for January 2023 actually shows that despite December 2022’s base rate increase, mortgage deal interest rates actually decreased by an average of 0.25%.

"For those seeking mortgages or re-mortgages, the market expects mortgage prices in the near future to continue reducing despite today’s rate rise, so there no cause for panic, and there’s actually an opportunity for homeowners to work with an expert mortgage broker, such as Broadland Consultants, to help them search an ever-changing mortgage market for the best deal for their specific circumstances."

To book a no-obligation meeting with a mortgage adviser at Broadland Consultants, please contact the Sowerbys team today.

You can find out more about Broadland Consultants under the 'our partners' section of this website.