Commenting on the Bank of England’s decision to increase the Base Rate to 0.75%, Conveyancing Executive, Chris Hodgson said:
“Given the decision to stick at 0.5% in May this year, today's rate increase should come as no surprise. It has been hotly anticipated by City commentators and could be the start of gradual increases over the coming months. Borrowers, therefore, really shouldn’t be surprised by today’s news.
“There should be little immediate impact from this small increase. Simply, a lot of home owners with mortgages are on fixed-rate products and many lenders have already adjusted their deals following changes to the libor rate since the start of this year.
“However, most fixed rate products are only for three to five years and these are timeframes which expire deceptively quickly. It is, therefore, advised that borrowers are aware of when their mortgage rate will change and start shopping around for alternative products sooner rather than later.
“For those of us operating within the property sector, the reality is that even a small increase such as that announced today can impact overall confidence in the market. When this is coupled with Brexit and the fact that several large firms have restructured, shed staff or simply gone in to administration, we will need to prepare for a wobble and provide on-going reassurance to our clients.”