 deals are normally affected as well, although it is down to your lender to decide if they put up your rate. You'll normally be reverted to your lender's SVR once your current mortgage deal ends. If you have a fixed deal, your repayments won't change until your current rate ends - and millions of people will end up paying more when they come to remortgage due to how much rates have risen over the last year. Last month, the Bank of England warned nearly one million homeowners will see their fixed rate mortgages rise by around £500 per month by 2026. If you're worried about your mortgage, the first thing to do is speak to your lender as soon as possible. Here are all the possible options they may be able to offer you - they often decide what is appropriate on a case-by-case basis. It is possible that accepting mortgage support could impact your credit file, which could affect your ability to borrow in the future, so remember to discuss this with your lender beforehand. Payment break: Your lender may agree to pause or reduce your payments for a limited time if you're struggling. Again, do check with your lender if this will be marked down on your credit file - for example, as an 'arrangement' marker or as arrears, as you're not making full payments. Switch to in){kind=link}
The base rate has risen from 5% to 5.25% – as widely expected by analysts – taking it to a new 15-year high and pushing up mortgages for people on variable deals and those about to remortgage
Mortgage borrowers were dealt more pain this week after the Bank of England confirmed it has raised interest rates again.
The base rate has risen from 5% to 5.25% – as widely expected by analysts – taking it to a new 15-year high. When the base rate is higher, this pushes up variable mortgage deals, while people on fixed rates face paying substantially more when their current deal comes to an end.
Tracker mortgages “track” the base rate, so this type of deal goes up when the base rate increases. Standard variable rate (SVR) deals are normally affected as well, although it is down to your lender to decide if they put up your rate.
You’ll normally be reverted to your lender’s SVR once your current mortgage deal ends. If you have a fixed deal, your repayments won’t change until your current rate ends – and millions of people will end up paying more when they come to remortgage due to how much rates have risen over the last year.