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.

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More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.

There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.

The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers. 

Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer. 

A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.

Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.