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!

Written by
Malcolm Davidson
Managing Director of UK Moneyman Ltd.
MAQ & CeRER Qualified

27th November 2023

About the Author

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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