Following on from our October 2017 article, where we speculated that we would see an increase in the Bank of England base rate from 0.25% to 0.50%, we saw, at the beginning of August, a further increase to the Bank of England base rates from 0.50% to 0.75% – the highest it has been for almost a decade. But what does this mean to your mortgage?
The biggest impact will be seen by those of you who are currently on standard variable rate mortgages. With no certainty in your mortgage payments, you will likely see a small increase in your monthly outgoings, however this small increase could end up costing large amounts over the term of your mortgage if you stay where you are and make no changes to the deal you currently have. For example, if you currently have an outstanding mortgage of £100,000.00, you could potentially see an increase in total interest cost over the full term of around £3,600.00.
If you’re on a fixed term mortgage then you may think you don’t have anything to worry about – and though this might be true for the short term, have you considered your long term repayment strategy? As there is a great chance the interest rate rise will have an impact on this.
Whether you’re on a variable rate mortgage or a fixed rate mortgage, there has never been a better time to review your mortgage options. By sitting down and reviewing what is on offer there is a chance you could save money over the long term, so what is stopping you?
If you would like to review your current mortgage arrangement then please contact the office to arrange a FREE initial discussion with one of our specialist mortgage advisers. To be in with the chance to win fee FREE mortgage advice then please visit our Facebook Page – www.facebook.com/LibertyPartnershipLtd – and enter our competition.