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Average Tracker Mortgage Rate Rises to 4.73% After Bank of England Hike
Average tracker mortgage rate rises to 4.73% after Bank of England raises base rate
Key points
- Average tracker mortgage rates rose 5 basis points over the week to 4.73%, while fixed rates dipped slightly.
- Average two-year fixed rate fell from 5.97% to 5.96%, and the five-year fix eased from 6% to 5.99%.
- The Bank of England raised its base rate from 3.75% to 4%, and a further rise to 4.25% is widely expected.
Why it matters. Tracker borrowers face higher costs as lenders pass on the rise, and for a £250,000 mortgage over 25 years a 0.25 percentage point increase adds around £37 a month.
Lenders are passing on the Bank of England's rate rise, lifting average tracker mortgage rates by 5 basis points over the week to 4.73%, Moneyfacts data shows. Average two-year and five-year fixed rates dipped slightly to 5.96% and 5.99%, as Barclays cut some fixes by up to 30 basis points. Moneyfacts' Adam French said the base rate rose from 3.75% to 4%, with a further rise to 4.25% widely expected in December or February.
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Average Tracker Mortgage Rate Rises to 4.73% After Bank of England Hike
Lenders have begun passing on the recent Bank of England base rate increase to borrowers, according to Mortgage Strategy. Moneyfacts rate watch data show the average tracker rate rose by 5 basis points over the week to 4.73%. Average two-year fixed rates, by contrast, dipped slightly over the same period. The divergence suggests that tracker borrowers are feeling the rate rise immediately, while fixed-rate customers are not yet affected. Borrowers on trackers are likely to see higher monthly payments as a result.
Sources
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