Ban On Ground Rent: What You Need To Know
Mortgage NewsRead article
30 May
Update: Bank Of England Increases Base Rate To 3%
15 Nov
Mortgage News
Last week, the Bank of England announced they would be increasing the Base Rate to 3%. This increase marked the most significant rise since 1989 and a dramatic increase from the Base Rate this time last year, which was set at just 0.1% (November 2021). Amidst the ongoing cost of living crisis, this development marks the eighth consecutive month that the Bank Of England has decided to raise the Base Rate.
As your personal mortgage brokers in Northampton, we understand that this can be an increasingly challenging and unnerving time. We’re here to help simplify what this means for you as a consumer, whether you’re a new buyer or an existing landlord. If you’re in need of bespoke advice for your current circumstances, get in touch with us today to book an appointment with an advisor.
What Does This Mean For Me As A Consumer?
For mortgage holders in the UK, rising interest rates are likely to put additional pressure on household finances and lower disposable income. As a consumer, when interest rates rise, it ultimately creates a knock-on effect which results in higher monthly repayments on the money you’ve borrowed, for example, on your mortgage or bank/personal loans.
So, when it comes to mortgages, the rise in interest rates tends to be passed down from the lender to the borrower.
If you are currently on a fixed-rate mortgage, this is unlikely to create any drastic changes to your current repayments; however, if you are a new home buyer looking for a new fixed-rate mortgage product, you will likely face higher payments from the outset.
When it comes to renting a property, renters can find themselves stuck in more expensive rental contracts. As a renter, you may face increased costs as landlords also tend to pass increased borrowing costs down to the tenant. The likely increased costs in the coming months may result in many landlords selling their properties to avoid high payments on existing mortgages, creating a greater strain on available property rentals across the country.
How Can I Prepare Myself For The Next Quarter?
At The Mortgage Experts, our team of specialist Mortgage Brokers in Northampton scour the market to find the most suitable and cost-effective products to suit your circumstances.
In addition to this, we offer a range of insurance products to add protection in the event of illness, accident or unemployment. We help our customers ensure that if they are ever in a position where they are signed off sick or made redundant, they will still be able to afford their rent or mortgage payments, along with any monthly overheads (utility bills, car payments, food etc.) Ensuring that you have the appropriate cover can help ease your mind during difficult times and also prevent future financial catastrophes.
If you’d like to discuss your available options, contact our team of Mortgage Advisors in Northampton today to arrange a free initial consultation. For updating news in the meantime, visit our News & Insights section for more information.
