The Bank of England base rate has been increased for the 10th consecutive time today but is it all bad news for your mortgage?
People with tracker or variable rate mortgages are likely to see another increase in their mortgage payments from today following the Base Rate increase from 3.5% to 4.0%. However, the cost of fixed rate mortgages are continuing to fall from the heights of last year where they peaked at around 6%.
Why are they falling when the base rate is increasing?
The reason that they are still coming down in price is due to the fact that they are based on what is called ‘Swap’ rates, these rates are what banks use as a guide to trade money between themselves and ultimately lend to people as mortgages. It is important to have a professional keeping an eye on the market for you especially at the moment!
We have managed to reduce one of our customers interest rate by over 1.35% since they applied back in November giving them a monthly saving of over £400.
If you are looking for some assistance with your mortgage or would like to understand what your options are please get in touch