Interest rates rise to 4%: what it means for mortgage rates (Rightmove)
If you’re looking to buy a home right now, or you’re coming to the end of a fixed-rate mortgage deal, you’ll know there has been lots of news about interest rate rises and how they can impact mortgage rates.
But if you’re buying a home, an interest rate rise doesn’t necessarily mean it’s now going to be more expensive to get a mortgage. That’s because this month’s rise had been widely expected by lenders. The ‘Base Rate’ is set by the Bank of England and is the interest rate it charges to other banks and financial institutions when they borrow money. It’s also used to control inflation.
The BofE has said it would continue to raise the Base Rate to help combat high inflation. The Government sets the Bank of England an inflation target of 2%, but the current level is much higher, at 10.5%.
Read the full article here.
