The Bank of England's Monetary Policy Committee (MPC) met today Thursday 22nd of September 2022, and set a 14 year high increase of the B.o.E. base interest rate of 0.5 percentage points to 2.25%.

Once again, this measure was done with a view to tackling rising inflation, expected to reach a peak of 16% by the end of 2022 - although some forecasts are indicating it will peak at 11% in October 2022, following the measures introduced by the Government in regards to the energy crisis. Inflationary pressure is largely blamed on the War in Ukraine and the cost of rising commodity prices on the global markets. 

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 variable mortgages will see a further increase in the repayments they make each month, following today's announcement by the MPC.

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 record increase.

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 15th December 2022

Think carefully before securing other debts against your home.

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