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.

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 £399.

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

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: www.financial-ombudsman.org.uk

Call: 01628 507477