The Bank Of England Rates

Newsletter Q Mortgages   The Bank of England Raises Interests Rates to 4.50% Today, the Bank of England has announced that they are increasing the base rate to 4.50%. Interest rates can have an impact on a wide range of areas including mortgages, borrowing, pensions and savings. The Bank of England has continued to increase the base rate to try and tackle rising inflation (cost of living)1, which in general terms, has been attributed to the increase in energy costs, higher prices for goods from abroad, a buoyant job market and businesses charging more for products. Some steps you can take to help to manage further interest rate rises on your mortgage We’d suggest taking a more proactive approach when looking at your finances, acting now could help. Every person has different circumstances, we strongly recommend you look at the terms of your mortgage and contact us first, we could help identify your options and provide advice that centres on your needs and circumstances. Mortgage rates could be better than you think.

Despite the changes throughout last year, the market has shown positive signs of stability and a gradual return to pre-pandemic levels, according to a press release by UK Finance.2 Whilst they have predicted a drop in mortgage lending, there is an indication that there will be a strong demand for refinancing (also known as remortgaging), with deals coming to the end of their initial terms. It might be a good opportunity this year to take a proactive approach when it comes to advice, especially if it’s something you’ve previously put off. Contact us to book an appointment to see what we can help you with.   How will today’s rate change affect me? How the rate might affect you will depend on what mortgage you’re on and when your deal comes to an end. If you don’t know, check your paperwork or get in touch with us to discuss your existing mortgage arrangement. The good news is that if your mortgage is on a fixed rate, your monthly repayments will be unaffected by the rate rise for the period it is fixed for. Those with fixed rate mortgages are likely to be affected once they reach the end of their current deal. An interest rate rise could make remortgaging more expensive. If you have a variable rate tracker mortgage that is linked to the Bank of England base rate, you are likely to see an immediate impact on the amount you repay. Those on a Standard Variable Rate (SVR) could see an increase which is decided by the lender. If you are unsure, it is worth checking your mortgage terms and conditions in your mortgage offer document. For readers who are still on a variable rate, or are coming to the end of their fixed rate period, contact us to see how we can help. Rectangle: Rounded Corners: Contact us for a Review Please note, your home may be repossessed if you do not keep up repayments on your mortgage. Manage your finances Another good tip once you understand the type of mortgage you have, is to work out what you can afford and a good way to do this is to create a budget which can help highlight any areas where you may need to cut your expenditure and identify savings opportunities. Tactics such as building your credit score could help you get a better deal when it comes to securing your next mortgage.
Take Mortgage Advice Depending on your circumstances, there can be measures you can take. The most apparent course of action could be to switch to a fixed-rate mortgage, or fixing the mortgage rate for a longer period of time to protect from further interest rate rises. However, it is worth noting that fixing for a longer period of time may restrict you from other deals in the future (should the rate decrease) and there may be early repayment charges to switch before your rate ends.  Whilst this option could work for some, it may not work for others. We will look at your individual needs and circumstances, and at your available options and provide our advice on which is the most suitable for you. Arrange a Review As your mortgage adviser, the key message would be to act now to help avoid any unwelcome surprises. You will likely be contacted by your current lender offering advice or other intermediaries too. But if you need any further advice or support, then please don’t hesitate to speak to us for guidance. We will assess your current circumstances and search across a wide range of products, and aim to recommend the right deal suitable for your individual needs.   All the information in this article is correct as of the publish date 11th May 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. Sources: The Bank of England. 2023. Why have interest rates gone up? [online] Bankofengland.co.uk. Available at: https://www.bankofengland.co.uk/knowledgebank/why-are-interest-rates-in-the-uk-going-up [Accessed 11th May 2023]. UK Finance (2022) Mortgage Lending to Fall 15% Next Year, Returning to Pre-Pandemic Levels. Available at: https://www.ukfinance.org.uk/news-and-insight/press-release/mortgage-lending-fall-15-cent-next-year-returning-pre-pandemic  [Accessed 11th May 2023]   Q Mortgages  
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Q Mortgages Limited is an Appointed Representative of HL Partnership Ltd, which is authorised and regulated by the Financial Conduct Authority
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK
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