How it may impact you…
Fixed Rate borrowers
If you’re on a fixed rate deal, then any change in the Base Rate would not affect you until your deal period ends.
Although, it may influence decision-making 6 months+ ahead of the end of your deal period.
And will markedly affect the 800,000 fixed rate borrowers whose deals end in the second half of 2023. And, to some extent, those deals for 1.6m borrowers that finish in 2024.
Tracker Rate borrowers
On average, the 0.25% rise in Base Rate may add a further £23.71 per month to payments, on top of previous increases.
Standard Variable Rate borrowers
On average, the 0.25% rise in Base Rate may add a further £15.14 per month to payments, on top of previous increases.
According to UK Finance (which represents the banking and finance industry), it said that lenders stand ready to help anyone struggling with mortgage payments, with various options to consider. Plus, the government has now set up a new Mortgage Charter to reinforce the support on offer for those that may have payment issues.
(Source: UK Finance, August 2023)
Average Rates
The following are average fixed rates across the board (to give you a general feel).
Better rates will be on offer for some, such as those requiring a 60% (or less) loan against the value of their property.
2-year fixed rate deal
Average rate, 1 August 2023 = 6.85%
5-year fixed rate deal
Average rate, 1 August 2023 = 6.37%
Standard Variable Rate (SVR)
Average rate, 1 August 2023 = 7.85%
(Source: moneyfactscompare.co.uk, August 2023)
With so much to consider, it can all be quite confusing, and that’s why you should talk to us.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Mortgage calculator
Monthly payments for a mortgage per £1,000 borrowed over 30 years
| % Interest rate | £ Interest-only* | £ Repayment |
| 0.25 | 0.21 | 2.88 |
| 0.50 | 0.42 | 2.99 |
| 1.00 | 0.83 | 3.22 |
| 1.50 | 1.25 | 3.45 |
| 2.00 | 1.67 | 3.70 |
| 2.50 | 2.08 | 3.95 |
| 3.00 | 2.50 | 4.22 |
| 3.50 | 2.92 | 4.49 |
| 4.00 | 3.33 | 4.77 |
| 4.50 | 3.75 | 5.07 |
| 5.00 | 4.17 | 5.37 |
| 5.50 | 4.58 | 5.68 |
| 6.00 | 5.00 | 6.00 |
| 6.50 | 5.42 | 6.32 |
| 7.00 | 5.83 | 6.65 |
| 7.50 | 6.25 | 6.99 |
| 8.00 | 6.67 | 7.34 |
| 8.50 | 7.08 | 7.69 |
| 9.00 | 7.50 | 8.05 |
| 9.50 | 7.92 | 8.41 |
| 10.00 | 8.33 | 8.78 |
Here’s how to use the mortgage payments calculator: A £100,000 mortgage over 30 years, charged at a 5% interest rate would cost 100 x £5.37 (for Repayment) = £537 per month. * Excludes any payments to a separate savings scheme, to help pay off the capital amount borrowed.
This calculator only provides a guide to monthly payments and does not guarantee eligibility for a mortgage. The actual amounts that you may have to pay may be more or less than the figures shown. Please contact us for a personalised illustration.