The Bank of England’s increased interest rates from 0.1% to 0.25% on 16 December.
Lenders including Nationwide and Santander have already announced they will mirror the increase by putting up the cost of bank rate-linked mortgage deals and their standard variable rate (SVR) of lending by 0.15%, with effect from 1 February 2022.
Nationwide’s base mortgage rate (BMR) and standard mortgage rate (SMR) deals will increase by 0.15% to 2.25% and 3.74% respectively, while Santander’s follow-on rate, which applies at the end of its base rate tracker deals, will increase to 3.5%. Its standard variable rate will rise to 4.49%.
Other lenders are expected to follow suit.
Many new fixed rate deals had already factored in the interest rate hike, although further hikes are likely to be in store. Yesterday, Nationwide edged up the cost of some two, three and five-year fixed rate deals across a range of deposit levels.
Why has Base Rate increased?
The Bank of England’s Monetary Policy Committee (MPC) has been under pressure to cool the economy and reduce soaring inflation.
Official figures show the Consumer Prices Index (CPI) surged by 5.1% in the 12 months to November 2021, marking its highest level for a decade. Inflation is also now well over double the Bank of England’s 2% target, set by the government.
The Bank of England had previously warned that inflation could ‘comfortably exceed 5%’, but this was not expected until April 2022 when regulator Ofgem is likely to put up the energy price cap, resulting in more expensive energy bills for millions of UK households.
What are today’s mortgage rates?
But, with so much to keep track of and mortgage rates changing often on a daily basis, how can you keep up-to-date? A simple way is by using our mortgage tables, powered by Trussle – a trusted mortgage broker and our mortgage partner.
To find out what deals are available at today’s rates for the kind of mortgage you’re after, you’ll need to enter your personal criteria into the table below. Here’s what to do:
- Select whether the mortgage is to fund a house purchase or if it’s a remortgage for an existing property
- Enter the property value and the mortgage amount you require. This will automatically generate a percentage which is known as your ‘loan to value’. The lower your loan to value, the cheaper the mortgage rates available
- Tick the relevant box if it’s a buy-to-let or interest-only mortgage (you’ll need a repayment strategy in place for these deals), or if you’re looking for a mortgage to fund a shared ownership property
- Finally, filter your search by the type of mortgage you want, for example a two- or five-year fix or tracker. The filter is set to a complete mortgage term of 25 years but you can change this if required.
What else do I need to know?
Mortgage deals offering the cheapest rates usually come with fees attached. You can opt to pay these upfront or add them to the loan. To factor in the cost of the fee, order your the results by ‘initial period cost’ (in the ‘Sorted by’ dropdown).
Alternatively, you can order results by initial rate, lowest fee or monthly repayment – even by the lender’s ‘follow on’ rate that the deal will revert to at the end of the term.
While mortgage rates change daily, the very cheapest are reserved for bigger deposit amounts, usually of 60% of the property value or more. And in all cases you will need a sufficient income and clean credit history to be accepted for a mortgage.
If you want to see what your monthly mortgage payments might look like in different scenarios while overlaid with household bills, our mortgage calculator will do the sums.
While Trussle lists around 12,000 mortgage deals from 90 lenders – which accounts for the vast majority of the market – occasionally some deals are available exclusively through a handful of brokers, so you may not see these listed.
When can I start a remortgage?
Mortgage offers from the major lenders tend to last for six months (as set out in our Best Lenders For Remortgaging), although some lenders cap expiry dates at three months. It’s worth looking a new mortgage deal this far in advance as you will be able to lock in a rate you see today – at no cost and with no strings attached.