BREAKING: The Bank of England has voted to raise UK interest rates, for the first time in over a decade.

BOE interest rates

Bank Of England’s Decision

Interest rates are going up to 0.5%, from 0.25%.

The Monetary Policy Committee has voted 7-2 to increase Bank Rate to 0.50%. The committee voted unanimously to continue with the programmes of corporate bond purchases and UK government bond purchases. The Committee says it only expects interest rates to rise gradually over the next three years.

Should I fix now?

The Bank of England base rate has been historically low for so long, many borrowers have not known any different, so any rise in rates could have a dramatic effect on the disposable income they have or their ability to keep paying the mortgage.

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What Does The Interest Rate Rise Mean For you?

The Bank of England base rate of 0.25% has been at a historic low for 10 years and bearing in mind the normal level of interest rates previously has been nearer 5%. The economy has continued to improve and inflationary pressures mean the Bank of England raised interest rates to 0.5%.

The increase in the base rate means higher monthly bills for millions of people with variable rate and base rate tracker mortgages.

Those on fixed-rate mortgage deals would be protected from any increase, but only until the end of their deal’s fixed term.

What this means for you is, now is the time to fix, ahead of everyone else looking to do so, as the best deals will quickly disappear as borrower’s rush to fix their mortgages.