After all the excitement of last month, The Bank of England Monetary Policy Committee has voted to keep base bank rate at 0.5 % in December. The MPC vote was unanimous.
Market commentators say that the decision was expected, so the increase last month had the desired effect on the economy.
It's difficult to say what effect this has had on mortgage lenders, as most of them made their moves around October. Some lenders tweaked their rates up for new borrowers in anticipation of last month’s increase, and some reduced their rates – quite simply because the end of the year is nigh and some lending targets have still not been met. Borrowers are still taking advantage of extremely low mortgage rates.
This month however, existing borrowers will see their mortgage payments increase if they are on the lender’s standard variable rate (SVR).
Everyone with a mortgage should check if they are on the SVR now, as the rates will rise from historic lows this month. In most cases you'll notice the 0.25% difference - adding up to £200 per year per £100,000 of a mortgage.
There are still cheap fixes available, with 5-year fix rates from as low as 1.75%! Mortgage Required saved a client £340 a month by swapping them from their lenders standard variable rate to a fixed. That should help with the Christmas shopping!
If you would like to discuss your mortgage arrangements, please contact us on 01628 507477.
Recent posts
The Equity Release Council has revealed that three in five UK homeowners are interested in releasing money from their property later in life.
Prices for UK houses drop in July 2024
7 days ago
The average seller’s asking price dropped by 0.4% in July, a bigger drop than we have typically seen.
We explore the differences between Millennials and Gen Z and what both generations ideally want from a new home.
Overpaying mortgage vs money into savings
18 Jun 2024
Should you overpay your mortgage? If you can put extra cash away you need to seriously consider whether you should pay more off on your mortgage or put it into a savings account.
Buying a property, especially in the current climate, is a big decision for first time buyers. We have listed a few tips that can help you buy your first propertyy
Does the time of year make a difference in house purchases? The answer is, yes and no.
The popularity of buying a house can vary depending on various factors such as regional trends, how the economy looks, and of course personal circumstances.
6 Garden Tips to Add Value to Your Property
30 Apr 2024
If you are looking at putting your house on the market, you may want to consider giving your garden some TLC. Small changes can make your outside space a lot more attractive to potential buyers resulting in a faster sale.
Averages for a first time buyer in the UK
24 Apr 2024
Getting on the property ladder is a big milestone in life, and is not something to take lightly. There are several things to take into consideration such as saving up for a deposit, finding your dream home, and finding the best mortgage product to suit you. Here we look at UK first time buyer statistics.
More information
Trusted by
