August 2023 – Bank of England Raises Interest Rates From 5% to 5.25%

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!

🤔 Is Your Current Mortgage Deal Ending Soon?

Most Lenders are offering reasonably good “follow-on” deals at the moment but that’s not to say you shouldn’t be shopping around (with our help of course!) for the cheapest option.

For those borrowers staying loyal to their current lender, we strongly recommend you let us affect the switch on your behalf.

We are then responsible for the advice to ensure you end up on the most suitable mortgage and our advice is to get your new deal locked in at the earliest opportunity as more rate rises could be ahead.

You also benefit from our free, ongoing mortgage monitoring software which is “always on”, ensuring you are always on the best deal. If your current mortgage deal is ending on or before 28th February 2024, please click the button below, it’s a free service.

🔍 Looking to Purchase a New Property?

We are still seeing a high level of activity amongst 1st Time Buyers, who, despite being aware that mortgage rates have been going up, are not really putting their plans on hold.

This is partly because they never had a 2 or 3% mortgage rate to compare things to and also the alternative solution of renting is far less palatable. According to Nationwide, the average cost of a home in the UK is now £260,828 which is 3.8% down on last year.

Values finally starting to come down is amazing news for 1st Time Buyers and also pretty good for “next steppers” too because if you are looking to move into a more expensive property than the one you are buying will likely have lost more in value than the one you are selling.

💭 Later Life / Equity Release Plans (Age 50 to 90+)

If you are over 55 and you have an interest only mortgage coming to an end, please speak to us about your options.

From dedicated retirement interest only mortgages to lifetime mortgages with monthly interest payments, you don’t have to accept compound interest and watch you equity being eroded.

Later life lending is becoming more flexible to meet borrowers needs, our advice process will help to tailor a solution for your situation.

💻 Equity Release Guides

Take a look at our latest articles on the topic of equity release and lifetime mortgages.

The Pros and Cons of Equity Release | UK Moneyman - Mortgage Broker | Later Life Mortgage Lending

What Are The Pros & Cons of Equity Release?

A look at both the pros and cons of equity release, whether not equity release is a good idea & the benefits of equity release advice.

How does a lifetime mortgage work? | UK Moneyman

How Does a Lifetime Mortgage Work?

Here we take a look at how a lifetime mortgage works and the difference between a lifetime mortgage and equity release.

🏡 Cost of Living/Home Insurance

It is good to see inflation coming down but clearly the cost of living is still very much top of the agenda. This could spell bad news for businesses who trade in luxury items but opportunities for those who can offer products or services at competitive prices.

On that note, if you are in the market for Home Insurance we have partnered with Uinsure and you can quickly obtain a free, no obligation quote from them using the link below.


Subscribe to our monthly newsletter for the latest updates on the mortgage market.

Please wait...

Thank you! Now you'll be kept in the loop with the latest market updates!

Last Edited 03/08/2023

Latest News

Read more guides

UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at

Equity Release Council LogoSolla Later Life Logo

Tools & Guides

UK Moneyman Accord Arrow
Facebook Image Twitter Image Instagram Image YouTube Image LinkedIn Image SpotifyImage TikTok Image
Speak to an Advisor - It's Free! Speak to an Advisor - It's Free!
We use cookies to enhance your customer experience. More detailsGot It