Navigating The Rising Mortgage Interests Rates 

The recent rise of the Bank of England’s (BOE) interest rates has caused great concern for those who want to take out a mortgage on a new property or remortgage an existing property. Interest rates are an important consideration when you’re choosing a mortgage product and the changes implemented by the Monetary Policy Committee (MPC) at the start of August will have a direct impact on how much it costs people to borrow money.

It has always been beneficial to speak to a mortgage advisor when you’re taking out a new mortgage, but this interest rate rise has made it even more important. Getting some tailored mortgage advice from an independent mortgage expert will be incredibly helpful and it can help you to ensure you are opting for the best rate available. 

Below we have looked into how the BOE’s base rate has changed over the years and how a mortgage advisor can help you to navigate mortgage interest rates.  

How has the base rate changed over the years?

The Bank of England's base rate has changed quite considerably over time and generally speaking, since the early 90s, it has gotten lower and lower until it hit an all-time low of 0.10% in March 2020. Since this time, it has continued to rise and it hasn’t been as high as it is now since December 2008. 

One of the main factors that dictates the BOE’s base rate is the rate of inflation and higher energy prices, among other things, are expected to push inflation to 13% in the next few months. Considering the BOE’s target for inflation is 2%, this is very worrying and one of the most efficient and effective ways to bring inflation down is to increase interest rates. So, it’s likely the base rate will continue to rise as we head into 2023 in an attempt to get inflation back down. 

If high inflation lasts for a long time, this will make the cost of living even worse for people and by raising the base rate now, inflation should begin to fall next year. It is predicted that inflation will be close to the 2% target in around two years and the base rate will continue to be lowered alongside the dropping inflation rate. 

What impacts the interest rates you’re offered on a mortgage?

What happens to interest rates in the upcoming months depends on what happens in the economy and if you’re considering taking out a new mortgage, you will understandably want to know more about what impacts the interest rates you are offered by mortgage lenders. 

Whilst the BOE’s base rate doesn’t dictate what mortgage providers’ interest rates are, it does heavily influence them. Both residential mortgage interest rates and buy-to-let mortgage interest rates will likely continue to rise alongside the base rate, and this would result in it becoming more expensive to borrow money from a mortgage lender. 

Other factors that impact the interest rates you’re offered include your credit score and the loan-to-value ratio of the mortgage you need. Generally speaking, the better your credit score and the lower the loan-to-value ratio, the lower the interest rates and different mortgage providers have different criteria they use when deciding how much interest to charge. 

If you want to buy a new property and you need a mortgage to do so or your fixed-rate mortgage is coming to an end and you’re keen to fix into a new rate, it is highly recommended that you speak to a mortgage advisor. They can help you to navigate the mortgage market at this unpredictable time, ensuring you get the best rates available in your circumstances. If you don’t speak to a mortgage expert, there’s a high chance you would end up paying extortionate interest rates which would have a big impact on the monthly repayments for your mortgage. 

Speaking to a mortgage advisor in Bracknell

When trying to find a new mortgage deal, if you’re worried about the rising interest rates, don’t hesitate to contact our team at Mortgage Required today. Our experienced mortgage advisors in Bracknell can provide you with expert advice, helping to ensure you’re taking out the best mortgage for your current needs. We offer a whole of market mortgage service and we will explore all available options, enabling you to make an informed decision about your next mortgage. We pride ourselves on delivering first-class customer service and we are dedicated to making the process of getting a mortgage as hassle-free as possible. 

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, but we estimate it to be between £399 and £599.

Mortgage Required Ltd, Finance House, 5 Bath Road, Maidenhead, SL6 4AQ is authorised and regulated by the Financial Conduct Authority reference 573718 at

The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients. More detail can be found on their website: