Property News · April 20, 2018

What would a base rate rise to 2% mean for your mortgage?


Bank rate rise could cost average homebuyer an extra £138 each month on £175,00 mortgageInterest rate rises may be gradual but they will not be glacial, Michael Saunders, a member of the Bank of England’s rate-setting committee has said, hinting that homebuyers could see the base rate rise to 2% before long. So what would happen to your mortgage (and savings) if and when rates are hiked?The base rate is currently 0.5%, so a rise to 2% implies an extra 1.5 percentage points on your annual interest payments. While that sounds low, it is equal to an extra £138 a month if you are the average homebuyer with the typical mortgage in Britain of £175,000. Continue reading…

Source : theguardian.com
Read more…What would a base rate rise to 2% mean for your mortgage?

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