The Bank of England has raised the interest rate for the first time in ten years.
Cast your mind back to 2007 and Rhianna topped the charts with her Umbrella song, Cristiano Ronaldo led Manchester United to Premier league glory and the first generation of iPhones was only three months old.
But what will the base rate rise from 0.25% to 0.5% mean for home owners, first time buyers and investors?
Any homeowner on a variable-rate mortgage will experience an immediate dent in the pocket. Perhaps not a big one, but an increase in your monthly outgoings nonetheless.
Although according to Bank of England statistics that’s only around one in ten households on a variable mortgage in the UK, compared to almost 20% of the home owning population a decade ago. That’s partly because more people have fixed rate mortgages today.
It also reflects the generational gap - older people have paid off their mortgages and own their homes outright, while many young adults have been unable to get a foot onto the housing ladder at all.
It’s also worth remembering we are experiencing historically low interest rates and at Gibbs Gillespie we’re not expecting the rise to have any effect on the local housing market which remains buoyant. But now could be a very good time to look at your current mortgage arrangement and see if there is a better deal available out there for you.
Arrange a free valuation appointment
If you are looking to buy a property, or you’re interested in changing mortgage lender to secure a better deal, talk to our friendly, award winning Mortgage Advisors at The Mortgage and Insurance Bureau who were voted the ‘Best Mortgage Broker in London’ at this year’s ESTAS and arrange a consultation.*
Whether you are thinking of selling or considering renting your property, or if you are simply seeking some advice, we would love to help. Contact the team at your local branch or pop along and speak to one of our property experts in person.
* Your home may be repossessed if you do not keep up repayments on your mortgage. We do not charge a fee for residential mortgage advice; however, there is an administration fee for processing each of your residential mortgage applications.