With the Bank of England raising the interest rate for the first time in 10 years from 0.25% to 0.5%, you may be asking “What does it mean for me?”. Hopefully we can help you answer that question.
There are over 8.1 million properties with a mortgage on in Great Britain with around 46% (3.7 million) being on either a tracker or the standard variable rate. Against the average mortgage balance on these mortgages of approximately £90,000 there will be an increase in monthly payments of less than £15
People tied into a fixed rate mortgage will not see any changes until they come to the end of their current deal.
The rise will certainly have a direct impact on those looking to get a mortgage that doesn’t already have one but we have seen 10 of the major lenders increase their rates over the last 3 weeks already, meaning you still would have paid more if you were looking last week or the week before. Although it is a small change in the interest rate, it could have a larger impact on those looking for a deal with a high loan to value.
At WeLocate we do not expect there to be a huge impact on the housing market as demand still outstrips supply, certainly in the Greater Manchester are, and the majority of homeowners are on fixed rate terms. We encourage people to make their decisions on buying and selling on medium to long-term plans and always base them around their own personal circumstances.
If you want to speak to one of our financial advisers call us on 0161 696 0777 (option 3) or email email@example.com