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The UK sees first Base Rate rise in 10 years

November, 02nd 2017

So, it's happened… The first base rate increase in 10 years. At midday today, the Bank of England announced that it would be increasing the base rate to 0.5%, after a vote of 7-2  in favour of a rate rise. This decision follows much speculation amongst market commentators of a rate rise, after Mark Carney commented, in October, that the majority of the Monetary Policy Committee saw a rate rise as appropriate.2

Why has the base rate risen?
The UK economy has weathered the Brexit storm better than expected.2 Inflation hit three per cent in September – its highest level in more than five years3. The policy dilemma which faced Britain's central bank, and influenced today’s decision, was how to balance surging inflation against an economic slowdown, post UK referendum4. The base rate was increased with the aim of counteracting rising inflation safeguarding the UK economy. Carney hopes that increasing the base rate will also protect consumers and reduce risky mortgage debt.5

How might the base rate rise affect your mortgage?
As you may have read in our previous Best Buy email, we have already seen some of the most significant mortgage lenders in the UK raise their mortgage interest rates. UK lenders including Barclays, NatWest, Nationwide, Halifax and a handful of other banks and building societies, have upped their rates in line with climbing swap rates, ahead of the base rate rise.

  • Tracker mortgages – For anyone with a base rate tracker mortgage, your monthly mortgage repayments will rise as of next month.
  • Variable rate mortgages – We may see rates start to fall, despite the rise in the base rate, as lenders may become less risk-averse with a higher base rate to fall back on.

  • Fixed rate mortgages - In the short term, those on a fixed rate mortgage can be safe in the knowledge that their monthly mortgage repayments will remain unaffected. Once the initial period has come to an end, however, higher mortgage rates may apply.
  • Savers - With a base rate rise, you will see interest on your savings increase.

If you would like to remortgage or discuss your circumstances, please call us on 0207 519 4985. Alternatively, you can send us an email to speak to one of our experienced Mortgage Managers.

Your home may be repossessed if you do not  keep up repayments on your mortgage. 

You may have to pay an early repayment charge to your existing lender if you remortgage.


  • This Month's Top Fixed Rate

    Fixed rate
    Initial rate: 1.24%

    Period: 2 Year

    Rate will revert to the lender's standard variable rate currently 3.74%
    The overall cost for comparison is 3.37%

    1.24%

    More info
  • This Month's Top Variable Rate

    Variable rate
    Initial rate: 0.99%

    Period: 2 Years

    Rate will revert to the lender's standard variable rate currently 5.29% thereafter
    The overall cost for comparison is 4.64%

    0.99%

    More info

    Get This Rate


Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt

Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.

A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.

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