Rising rates have been a feature of the mortgage market for almost a year. Following the latest Bank Rate rise, how should mortgage holders react?
With Bank Rate at its highest level in 15 years, in the short term, this will affect anyone with a tracker or variable rate mortgage through higher repayments. Those with fixed-rate mortgages are protected for now but could be forced to pay more when their current deal ends.
With inflation still high, the Bank of England is expected to continue increasing Bank Rate until the middle of 2023, at which point it is predicted to peak.
Interest rates seem high now after a decade of ultra-low figures, but the current rates fit into longer-term market cycles.
Finger on the pulse
We’re here to keep things in perspective and help you find the most suitable mortgage for your needs.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.