What does the Base Rate increase mean for your mortgage?

2nd August 2018 / in Contractor Mortgages & Protection Blog / by Gordon Hunter, MD

Today, the Bank of England has increased the base rate from 0.5% to 0.75%. This is only the second time in a decade they have increased the rates and it is the highest level since March 2009.

What does an interest rate rise mean for your mortgage?

  • More than 3.5 million residential mortgages are on a variable or tracker rate.
  • The average standard variable rate mortgage is 4.72%.
  • On a £150,000 variable mortgage, a rise to 0.75% is likely to increase the annual cost by £224.

Sources: BBC, UK Finance, Moneyfacts, Nationwide Building Society, August 2018

Should I switch my mortgage?

There are a number of factors that affect whether you should switch your mortgage.

If you are currently on a standard variable rate or tracker rate, you should consider looking to switch to a fixed-rate mortgage. A fixed-rate mortgage means you know your exact monthly mortgage payment without the worry of whether the interest rate might increase.

If you are currently on a fixed-rate mortgage, we can review this mortgage up to 3 months prior to expiry. It can be with your current mortgage lender or with a new lender – depending on what best suits your personal needs.

Are you paying too much on your mortgage every month? Speak to our expert advisers.

What would you do with the money you save? You could pay your mortgage off quicker, a home improvement, or book a last-minute holiday.

With expert knowledge, we often have access to exclusive deals and lenders that are not available on the high street. We scour our panel whilst considering your personal circumstances and presenting the most suitable solution for you. Super Contractors has access to a comprehensive lender panel and it is our duty to ensure that we provide a competitive deal for you.

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

This firm charges a fee of up to £395 for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.

Lifetime Finance Group Limited trading as Super Contractors is is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority.

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