The base rate and your mortgage
Truss threatens 7%
As infl ation continues its ascent, further increases to the BoE base rate could follow. But what e ect could this have on your mortgage?
Many mortgage borrowers are on fi xed rate deals, meaning that the rising base rate will have no impact on their mortgage payments until their deal fi nishes. However, it should be noted that when a fi xed rate deal fi nishes, borrowers who don’t remortgage will usually be automatically placed on their lender’s standard variable rate, which is tied to (and is usually several percentage points higher than) the BoE base rate. Those with tracker, variable or discount mortgages are also likely to see their mortgage payments rise commensurately with the BoE base rate.
Please get in touch to discuss your mortgage options.