Interest Rates and Your Mortgage: What You Need to Know Now

Published by: Jake Joffee

Understanding interest rates can seem as complex as a Rubik's Cube, but don't worry, we're here to align the colours and simplify the facts.

The interest rates rate influences what lenders charge for mortgages. When the base rate goes up, your morning coffee isn't the only thing that gets more expensive – your mortgage payments can too!

The Base Rate Effect:

  • Fixed-Rate Mortgages: If you're locked into a fixed rate, you can breathe easy. Your payments are the steady drumbeat that won't change with the base rate's rhythm.
  • Variable and Tracker Mortgages: These are the mortgages doing the cha-cha with the base rate. If the rate goes up, so do your payments. And vice versa.
This November, the Bank of England's decision not to drop interest rates might seem like a grey cloud. But every cloud has a silver lining.

Why No Drop Could Be Good News:

  • Steady rates often mean the economy is holding its own, not a bad thing for property values.
  • Knowing the rates won't plummet suddenly makes financial planning more stable.
What You Can Do:

  • Is it time to switch to a fixed rate? Stability might be worth its weight in gold.
  • If your mortgage allows, paying a little extra now could save you money later.
  • Changes in the base rate can affect your mortgage. Keep your finger on the pulse.
In a world of financial twists and turns, being informed is your best defence. While the base rate stays put for now, your approach to your mortgage doesn't have to.