Bank of England Raises Interest Rates… Again!

As first seen in our August 3rd 2023 market update newsletter.

As was widely anticipated in the press, the Bank of England has raised interest rates by yet another 0.25% and the base rate now sits at 5.25%.

This heaps more mortgage misery on those borrowers who are sitting on Lenders’ standard variable rates, but most people still remain insulated from these continued increases due to being on a fixed rate deal.

The Bank of England is committed to its policy of putting up interest rates to combat the inflation that we are all sick to death of, but we are now hoping that food price inflation has at least peaked, and the cost of our weekly shopping will not continue to rise quite as quickly as we move through the summer.

In the last week or so we have seen the first signs that fixed rates mortgages have begun to come down and we are really hoping that the worst of those deals are behind us now. It’s quite confusing to consumers that fixed rate mortgages can be coming down when the base rate is going up!