Prepare For Another Interest Rate Rise

Although I’ve probably said this many times before, it’s worth reinforcing that if you are a homeowner with a mortgage, you need to keep a close eye on interest rate movements.

As inflation is currently running above the government’s target, it’s more than likely that rates will go up again next month, probably by 0.25%, although there is an outside chance they will rise by 0.5%.

If you have a fixed rate mortgage, sit back, relax and feel smug. If you have a variable, discounted, or tracker rate mortgage, it might be worth doing some sums to work out how much more you might end up paying, as your mortgage payments are likely to rise.

Take a look at our mortgage repayment calculator – that should give you an idea of the rate you’ll pay (add, say, 0.25% onto your current rate, and fill in the other fields as accurately as possible). Obviously, this will only give you a “ballpark” figure of what you might end up paying, but it will hopefully give you a chance to prepare.

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