Since the Bank of England raised the base rates from 4% to 4.25% this has also raised mortgage rates. There has been an ever-growing pressure put on the cost of borrowing due to the bank increasing their base rate. When the Bank of England had raised the interest rates, millions of homeowners have faced a rise in their monthly repayments and interest rates. Luckily for some homeowners who are of fixed interest rates, won’t have to worry about a change in their repayments at the moment, but having said this, when the deal comes to an end, they will eventually have to much more on their repayments with higher interest rates.
Recently, the cost of energy crisis has been the driving force against high mortgage rates. As it seems, it doesn’t look like mortgage rates are going to be coming down any time soon and are most likely to be going up. They will continue to rise, for at least for the rest of this year, which means that mortgage repayments for homeowners won’t be doing down as quickly as hoped.
Some experts have predicted that the Bank of England may continue to raise the base rate to at least 4.6% by August of 2023, however, from 2024 mortgage rates may even start to come down. Whatever type of mortgage deal you are currently on, now may be a good time to think about fixing your mortgage in case there are any further base rate hikes in the near future.