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.
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.
- 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.