Here’s how the interest rate staying the same could impact your mortgage, whether you’re a homeowner or property investor.
For the second time, the Bank of England (BoE) announced that the base rate will remain the same, staying at 5.25%*.
So, what does this mean for you? Let’s take a deep dive into the current mortgage market to help you understand what’s going on, what it means for your mortgage – and what you can do.
What is the Bank of England base rate?
Set by the Bank of England, the base rate is a benchmark for the cost of borrowing money. It is important for you to understand because mortgage lenders base the rates they charge on it. So, if the BoE increases the base rate, it will inevitably increase the cost of borrowing. On the flip side, if they decrease the rate, it could decrease the cost of borrowing.
In the current case, as the base rate has remained the same, it indicates a calming of the market, which may make this a good time to review your mortgage options.
The Bank of England’s Monetary Policy Committee sets interest rates, known as the Bank of England base rate. The Bank of England base rate is now 5.25% (correct as of November 2023)*