During 2022 we saw the Bank of England base rate rise 9 times to the highest level in 14 years.
The base rate is the interest rate that the Bank of England charge banks and financial institutions when they borrow money. This has an onward effect in influencing the interest rate that lenders will then charge their clients for borrowing money on credit including mortgages.
The Bank of England base rate increased to 3.5% on 15th December 2022 and this will be reviewed again on the 2nd February 2023.
A lot of people are in fixed interest rates, meaning that their payment is a set amount until the end of their product. However, there are a large number of people on their lenders standard variable rate.
Lenders will normally increase their standard variable rate in line with the Bank of England base rate. Over the last 6 months of 2022, we saw standard variable rates increase from lowest at of 3.35% to the highest currently sitting at 8.35%.
You can check your lenders current standard variable rate by clicking here
Clients that are on lenders standard variable rates will have seen an increase to their monthly mortgage payment with each rise from their lender. You can secure the best remortgage deal to move on to a fixed interest rate, this will mean your payment stays the same each month until your fixed interest rate comes to an end.
Fixed interest rates give you budget stability so that while you have the uncertainty of other living costs increasing, you know exactly how much your mortgage payment will be each month.
You can look for the best remortgage deal when you have 6 months remaining on your current mortgage deal. Some lenders will offer mortgage offers that last for 6 months, so you can secure the interest rate and then wait for your current deal to come to an end.
Some clients are also looking at securing the best remortgage deal early to safeguard their payment going forwards. Most lenders will charge you a fee to leave your product early but this can often be included into your new mortgage.
Click here to arrange to speak to one of our specialist advisors today to find the best remortgage deal. Willow Brook mortgages are a mortgage broker near Bath offering fee free advice across the whole of the market, meaning we can look at over 100 lenders to find you the best product.
