UK Finance responds to the Bank of England's Bank rate rise

Responding to the Bank of England's Monetary Policy Committee's decision to raise the Bank rate to 0.25 per cent, Charles Roe, Director of Mortgages at UK Finance, said:

Today's interest rate increase marks a rise from historically low levels. Over 74 per cent of mortgage customers are on a fixed rate product and will see no immediate change to their mortgage payments. For those who have come to the end of their deal, a wide range of mortgage products are available and we encourage homeowners to shop around and choose the best one for their circumstances. Any customers with concerns about managing their mortgage should contact their lender who will be able to explore the range of individual support options available.

Area of expertise:

Mortgages

Notes to editor

<ul>
<li>Around 74 per cent of mortgages are fixed rate.</li>
<li>Fixed rate mortgages have been very popular in recent years ? 96 per cent of homeowner mortgages advanced since 2019 have been on fixed rates.</li>
<li>The majority of borrowers opt to fix their rate for either 2 years or 5 years.</li>
<li>Around 26 per cent of mortgages are on variable rates, which are either standard variable rates or tracker rates.</li>
<li>Approximately 850,000 mortgage borrowers have a tracker rate mortgage currently: UK Finance estimates that a rise in the Bank Rate of 0.15 percentage points will lead to an average increase in repayments by £15.45 per month. For those who are on a standard variable rate (SVR) ? approximately 1.1 million mortgage borrowers ? this rise translates to an estimated increase of £9.58 per month on average.</li>
</ul>

Please find a document on interest rates and mortgage pricing available <a href="https://www.ukfinance.org.uk/policy-and-guidance/guidance/interest-rate…;

Tags:

Housing market Mortgages