Bank of England raises interest rate to a record to 4.5%
Thursday 11 May, 2023
The Bank of England have continued the ongoing fight against inflation and raised the base interest rate to its highest level since 2008. Many economists had anticipated that this rise in the interest rate would be announced today.
The latest increase will see the base rate rise from 4.25% to 4.5% and is the 12th consecutive rise the Bank of England has made since December 2021.
The current rate of inflation has stayed persistently high, partly due to food prices rising at their fastest rates in 45 years. The inflation rate reached 10.1% for the year to March, which showed a slight decline from 10.4% that was seen in February.
The latest increase by The Bank of England will potentially affect people with tracker mortgages as they may be required to pay more for their mortgage each month. However, people who are on a standard variable rate mortgages may still see an increase in their monthly payment, but the increase may be smaller.
Nathan Hall, Mortgage Broker in Southend, Essex said:
“With The Bank of England’s continued raising of the base interest rate, it is expected that we will see the affects within mortgage deals available in the market in the near future. This means that, those that are currently on a fixed rate mortgage, which is approaching end of the mortgage deal, really should take action. If the existing mortgage deal is due to end sometime in the next six to eight months, then it is recommended that they ask a professional mortgage broker for advice as soon as possible.”
Nathan Hall continued:
“At Thomas Oliver, we understand how these interest rate rise may have an impact on your mortgage payments. We always recommend that if you have been affected by these interest rate rises then you should give us a call to discuss your situation with one of our professional mortgage advisers. They will be able to talk through your unique financial situation and help to answer any concerns that you may have.”