What Bank of England base rate increase means for you

The Bank of England has increased the base rate from 4.25% to 4.5% – taking it to its highest level since 2008.

The rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn.

It’s the twelfth time in over a year the Bank of England has increased rates after it first lifted them to 0.25% from 0.1% in December 2021.

If you have a mortgage or want one, you’ll need to know what the change means for you!

The Bank of England (BoE) has increased the base rate by 25 basis points to 4.5%.

Seven members of the bank’s Monetary Policy Committee (MPC) voted for the 0.25% increase, while two members preferred to maintain bank rate at 4.25%.

The base rate has increased as widely predicted by a further 0.25% – UK mortgage lenders had already largely priced in the rate rise, so mortgage pricing remains at similar levels’

Mortgage lenders criteria in some areas of the market is changing regularly, so it’s really important that buyers and homeowners seek expert mortgage advice as to which lender is most likely to approve their mortgage and offer them the best deal.