The Bank of England has responded to surging price rises by increasing interest rates for the first time in more than three years.
The rate increase from 0.1% to 0.25% was announced earlier today, despite fears the new Covid-19 variant could slow the UK’s economy.
A rate rise was also alluded to in October’s budget before being held at 0.1% last month.
Although savings rates may slightly increase, returns remain significantly below the rate of inflation, which currently sits at 5.1%.
The extent to which the rate rise will impact your monthly repayments will depend on the type of mortgage you have.
On average, the rise will add just over £15 to the typical monthly repayment for a tracker mortgage customer, and standard variable rate borrowers are likely to pay nearly £10 extra a month. In comparison, borrowers on a fixed-rate mortgage may not see a difference until they remortgage.
When remortgaging, it’s really important to find a mortgage that suits you and your needs. Our experienced team are at hand to help you to understand the market and which mortgage may work best for you.
If you’re looking to remortgage your home or would like to discuss your options, speak to a member of the team on 02921 660 550 or request a call back.