The Bank of England has raised the base rate from 3.75% to 4%, its first increase since August 2023.
Energy prices are behind the decision. Conflict in the Middle East has pushed up the cost of energy, raising household fuel and utility bills. Inflation has climbed to 3.5%, and the Bank expects it to reach about 5% by mid-2027. The economy has also been stronger than expected, so the Bank has acted now to limit how far higher energy costs push up prices more widely. The next decision is due on 17 December.
If you have a mortgage, the impact depends on your deal. On a tracker or variable rate, your monthly payments are likely to rise soon. On a fixed deal, nothing changes until it ends, but if that’s within the next six months, now is a good time to look at your options.
For buyers, the rise was widely expected and much of it was already built into mortgage pricing, so there’s no need to put plans on hold. Speaking to a mortgage adviser early and getting an agreement in principle helps you understand your budget and puts you in a stronger position when you make an offer.
For sellers, the buyers out there right now are serious about moving. Pricing your home realistically from the start is the best way to attract them and keep your sale on track.
For landlords, higher borrowing costs are a good reason to review the numbers on your portfolio. Rental demand in North London remains strong, and well-presented, well-priced properties continue to let quickly.
With the Budget behind us and stamp duty unchanged, the picture is clearer than it was a few weeks ago. Whether you’re buying, selling or letting in North London, our team can talk you through your options and what the local market looks like right now. Call us on 020 7607 5001 or email [email protected].
Source: BBC News
— Drivers & Norris