The Bank of England's Monetary Policy Committee (MPC) met today Thursday 15th of December 2022, and set a further increase of the B.o.E. base interest rate of 0.5 percentage points to 3.5%.

Once again, this measure was done with a view to tackling rising inflation. Inflationary pressure is largely blamed on the War in Ukraine and the cost of rising commodity prices on the global markets. 

Read the Bank of England's Monetary Policy Committee's Report for December 2022.

What does this mean for Trusted Xperts customers? Well in essence Mortgage Rates are rising fast with most providers removing their previous low cost deals. People on standard variable mortgages will see yet further increases in the repayments they make each month, following today's announcement by the MPC.

Customers who have 'Buy to Let' mortgages will be particularly at risk - because such mortgages are typically 'Interest Only Repayments'. This could have a knock on effect in the rental market space, as landlords consider increasing rents because of their increasing costs.

Trusted Xperts indicated in 2020, that was the time to consider taking out a new mortgage with historic low rates. Since then there has been a gradual increase and that has now culminated in another 33 year record high increase today.

We are in unprecendented times. Inflation is soaring, and we can no doubt expect to see further interest rate increases from the MPC in the coming months, as they grapple with a worsening economic picture for the UK.  Now still may prove to be the best time to secure a new mortgage - before the interest rate rises once again.

Andrew Bailey - the Governor of the Bank of England has warned British families face the longest recession since the financial crisis of 2008, and soaring prices.

Trusted Xperts

Next Monetary Policy Committee Meeting - Thursday 2nd February 2023

Think carefully before securing other debts against your home.

Your home may be repossessed if you do not keep up repayments on your mortgage.