Bank of England increases the base interest rate to 4.25%
Thursday 23 March, 2023
With the Bank of England’s (BoE) base interest rate already set at the highest level for 14 years, it had been widely anticipated that the BoE would raise interest rates again this afternoon.
This has now taken place, with a rate rise from 4% to 4.25%.
The 11th consecutive rise follows an unforeseen increase to the February rate of inflation to 10.4%.
Global financial market turmoil is one of the factors that limited the rate increase to 0.25%. Uncertainty was caused by the collapse of Silicon Valley Bank (SVB) and the USB takeover of Credit Suisse.
The headlined inflation rate jump in February to 10.4% led to the BoE interest rate rise becoming more likely. It is also worth noting that this is with a backdrop of the significant turmoil within the banking sector as a whole.
The increase to the BoE interest rate will mean those on, for example, a typical tracker mortgage will pay more for their borrowing each month. Those on standard variable rate mortgages may see a smaller jump compared to a typical tracker mortgage.
Katherine Mumford our Mortgage Broker in Tottenham, North London said:
“As the Bank of England’s base interest rate continues to rise, it is highly likely that borrowers will see the impacts filtering through and affecting mortgage deals within the market. As a result, anyone currently paying a fixed rate mortgage and close to the deal end should take action. If the current deal is within six to eight months of its end, home owners should seek professional advice as soon as possible. A mortgage adviser can assist them in securing the most suitable mortgage deal for their financial situation.”
Mortgage Broker Katherine Mumford continued:
“At Thomas Oliver we recommend that anyone impacted by base interest rate rises should call us to speak to one of our mortgage advisers. They will be able to discuss their individual financial circumstances and resolve any concerns that they may have.”