The base rate is now at 3.5%

Rate rise to 3.5% affects everything from mortgages to credit cards, loans and savings. What does it mean for your mortgage…..

The bank of England base rate made their announcement and as predicted, the base rate went up by 0.5% and is now 3.5%.

It was largely expected.

We don't think there's going to be a big change on the fixed rate mortgages that are currently being priced. They've actually come down quite nicely.

You're probably looking between 4.5% to 5% for a decent competitive fixed rate at the moment. But again, still, as always, speak to us depending on your circumstances and how that affects you.

If you are on a tracker mortgage then that will go up by half a percent, exactly as it says.

If you're on a variable mortgage, your lender should contact you shortly.

As ever, if you're stuck or want to know a little bit more, then give us a shout and we will talk you through your options and tell you what the best thing to do is.

But the base rate is now 3.5%. The next bank of England announcement won't be until 2nd February, and why it's too early to predict what they'll do then it's my estimation that we might see another rise then maybe by a quarter of a percent or so. I'm expecting the base rate by the middle of the year to be around 4% is where I'm expecting the bank of England base rate to be. It will depend on a number of factors such as inflation, swap rates, how the economy goes, and lots of other variable factors within that, but that's where most of us are predicting that to be.

Just give us a shout and we will update you.

Have a great day and I promise I won't be watching too much of the grinch while I work.

Matt Marsh (CeMAP)

07747 113500 / 02393 233267

matt@rbmsolutions.co.uk