As was widely expected The Bank of England has increased interest rates by a quarter of a point to 0.75 per cent.

This move, only the second in a decade and the first since last November, is on the back of solid employment growth, steady pay growth and a rise in consumer spending.

Borrowers who are on a fixed rate won’t see any change to their monthly payments. However, anyone on a variable-rate mortgages will see their mortgage payments increase slightly.

So, depending on your circumstances, this might be the right time to consider moving to a fixed-rate mortgage.

Despite this being an expected rate rise, fixed-rate mortgages are still very competitively priced, particularly on medium-term (e.g. five years) although these rates are unlikely to be around forever.

So though this may not be what want some borrowers want to hear, the good news is that this is the result an uplift in the economy in general which should have a positive effect across the board. And, there is certainly no need to panic about the direction of rates in the longer term. Bank of England governor Mark Carney has talked about any rate rises being ‘limited and gradual’, particularly as there is still uncertainty ahead, particularly where Brexit is concerned.

If you’d like to discuss your current mortgage, or a looking to arrange a new one, please call us on 715234 or email [email protected]