Bank of England raises interest rates to 1.75%

19 August 2022

As you may have heard, the Bank of England raised interest rates for the 5th time this year to 1.75% from 1.25%. This is the highest jump in 27 years. Let’s take a look at what this means for homeowners.

Although this comes at a time of rising energy bills and overall cost of living, it’s important to remember that interest rates have been at a historic low recently. There is still affordable lending available compared to what lenders were offering 10 years ago.

Property landlords have traditionally been seen as one of the groups that benefit from inflation. This is because, as prices rise, the value of their property increases along with it.

Rents have also increased dramatically over the past few years, and they’re now averaging more than £1,000 per month.

It may be worthwhile to shop around and see if you can get a better mortgage offer – there are several good deals on the market.

Just keep in mind that the more of your mortgage that you currently have paid off, the better deal you should be able to find. However, if you’re on a fixed rate mortgage and decide to switch to a different rate, you may have an early repayment charge payable.

Want to look into your options? Feel free to contact us if you would like to discuss this, we are here to help. Please contact your client manager, or call the office on 01332 207336.

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