Grant Nichols Director of Start Financial Services has given his comment on this increase.
The base rate has increased to 0.25% today due to inflationary pressure, with the rate of inflation currently at 5.1%. Mortgage rates have been at an all-time low recently and although they may increase slightly for new borrowers, many lenders have already priced in this base rate hike. Those currently on a variable mortgage will see an increase in payments, whilst savers will start to benefit.
We expect a couple more base rate rises over the coming months, but believe it will remain very low along with the cost of borrowing. This is, however, a great time to review any mortgages you have to ensure you have the most suitable product in the current climate.
Find out more at startmortgages.co.uk