Mortgage Payments Set to Rise Despite No Change in Base Rate

Homeowners with a mortgage could see their monthly payments increase by £287, despite the Bank of England’s decision to keep the base rate unchanged. This news comes as a shock to the 1.6 million fixed-rate mortgages that are due to end or have already ended in 2024.

Mortgage rates have been volatile in recent months

The analysis, released by a financial information website, highlights the uncertainty surrounding mortgage and savings rates. Despite the base rate remaining at 5.25%, mortgage rates have continued to fluctuate. The average two-year fixed mortgage rate has crept up from 5.91% to 5.93% between May and June, having fallen from 6.04% in December 2023.

Mortgage rates have been on the rise

The five-year fixed-rate mortgage has also seen an increase, edging up from 5.48% to 5.50% between May and June, having fallen from 5.65% in December 2023. This volatility has left many homeowners wondering what the future holds for their mortgage payments.

“The uncertainty surrounding mortgage rates is causing concern for many homeowners. With fixed-rate mortgages ending and new rates being introduced, it’s essential for homeowners to stay informed and plan for the future.” - Source

Homeowners are advised to review their mortgage options carefully

As the mortgage market continues to evolve, it’s crucial for homeowners to stay up-to-date with the latest developments and plan accordingly. With the possibility of rising mortgage payments on the horizon, it’s essential to review mortgage options carefully and seek professional advice if necessary.

Seeking professional advice can help homeowners make informed decisions

In conclusion, the uncertainty surrounding mortgage rates is a pressing concern for many homeowners. As the market continues to fluctuate, it’s essential for homeowners to stay informed and plan for the future.