The Bank of England’s Monetary Policy Committee (MPC) has voted by 8-1 to increase base rate by 0.50%, to 1.75%, the biggest increase for almost 30 years. The MPC says inflationary pressures in the UK and Europe have ‘intensified significantly’ since their last meeting, and this, the sixth consecutive rise since December 2021, sees the Bank continue to try and tackle rising inflation.
What the latest rise means for you
Our remortgage tracker shows that the average of the lowest 2 and 5 year fixed rates from the top ten lenders leapt to 3.46% and 3.50% this month respectively, compared to 1.34% and 1.55% at the beginning of the year. That would see borrowers now facing annual mortgage payments of £1900 more than in January, based on a typical £150,000 repayment mortgage. The latest rate rise could see mortgage rates continue to push up further. The good news for borrowers is that they can secure a new deal up to 6 months ahead of their current deal finishing, so you can start to plan ahead before your current deal comes to an end. That could be beneficial for those that are worried about rates rising even further. Our research shows that the majority of our customers are doing just that and starting to shop around earlier, with 66% now applying more than 3 months before the end of their current deal and many even further in advance. If you’re looking to remortgage, our online Mortgage Finder tool can help you search across the market to find the best deal for you.
