Bank of England 0.25% Interest Rate Rise 23rd February 2023 – Today has seen yet another interest rate increase of 0.25% taking Bank Of England Base Rate to currently 4.25% – it’s second increase of 2023 and 11th consecutive increase in a row.
Despite these consecutive increases mortgage lender fixed rates have been coming down since they peaked in November 2022. The lowest residential 5-year rates have fallen from a peak of around 5.67% (under 70% loan to value) in November to around 3.94% today, whilst 2-year rates have dipped even further, to around 4.31% from around 5.90% (under 70% loan to value). The fixed rate improvements mean that rates are now at the lowest level since the mini-Budget sent them into orbit.
Having said that the fixed rates offered by mortgage lender have started to creep up again lately so those coming toward the end of their current fixed deal within the next 6 months will need to plan ahead with their remortgage options. So if you have been putting off remortgaging now is the time to do it! There would be nothing to lose by securing a new fixed rate with Be Mortgages because if the lenders increase their rates again due to the Bank Of England hikes then you have secured the lowest available. And if the rates drop again before you complete then we will re-apply for the lower rate for you.
If you do nothing you will run the risk of automatically switching over to your current lenders Standard Variable Rate (SVR) which is currently standing at 6.99% on average. It is therefore very important to know the exact expiry date of your current fixed deal and to speak to a whole of market mortgage adviser like Be Mortgages at least 6 months prior to that expiry date to avoid automatically reverting to your current lenders much higher Standard Variable Rate.
UK interest rates were cut to 0.5% in 2009 after the financial crisis, then a record low, but were then lowered to 0.25% after the Brexit referendum in 2016. They then hit 0.1% in March 2020 once the pandemic hit, before the Bank began hiking in December 2021. But the days of ultra-low interest rates are behind us, people shouldn’t expect rates to return to the very low levels that we saw before the pandemic, even if the BOE do start to cut rates next year as everyone is hoping.
Be Mortgages have access to every mortgage lender and will find you the cheapest rate available and advise on differnet ways we can look to reduce your monthly mortgage payments. Once we have reserved you a rate we will continuously monitor the market for you and if rates go down even further we will apply for the new lower rate for you. Get in touch 0203 2913001.
Your home may be repossessed if you do not keep up the repayments on your mortgage.