Today, 22nd September 2022, the Bank of England has again increased base rate by 0.5% to 2.25%. This is the highest rate the UK has seen in 14 years and could mean homeowners face big increases in their mortgage payments over the coming months.
There is increasing concern that the Bank of England will again increase base rate with the general consensus that we will be at 1.75% by the end of the year. With inflation currently at 9.1%, a 40 year high, if rates do increase it is also expected this will hit 11% by 2023.
This past week has seen a lot of change in the mortgage market with some of the largest lenders increasing products, however there have been decreases too. HSBC have reintroduced a sub-1% tracker mortgage at 60% Loan to Value. Great for those clients who have large amounts of equity in their properties although the flexibility a tracker gives you means you are susceptible to rate increases. Speak to one of our advisers for more information about the most suitable product for your requirements.
The Bank of England has today (16th December) increased base rate from 0.1% to 0.25%, the first increase since August 2018 as a result of inflation rising. This means savings will achieve higher returns but it’s bad news for mortgage owners on trackers and variable rates as their payments will increase. Speak to one of our advisers about fixing your mortgage payments.
Nationwide Building Society have today published their House Price Index (HPI) for November 2021. Growth has increased again month on month by 0.9% and has now reached double figures to hit 10% against the same time last year. As a comparison pre pandemic, house prices across the UK are 15% higher than in March 2020. The housing market remains strong but there are signals that this may level off in 2022.
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