Change in Interest Rates

Caz Blake-Symes • November 4, 2017

What Does the latest Interest Rate Rise Mean For Your Mortgage?

Most peoples’ mortgage deals are either fixed-rate or variable. A fixed rate deal is for a set period, whereas with a variable rate deal, the interest rate can move at the discretion of their lender.

If you have been on the same mortgage deal for quite a few years now, you’re most likely on a variable rate deal. This means that unfortunately, your rate will increase with today’s base rate rise.

Robert Nichols, CEO of Portico says:

“Those on variable rate mortgages will see a small increase in their monthly mortgage payments. For example, for the average mortgage in Britain of £175,000, an increase of 0.25% would increase monthly payments by about £22 a month.”

But it’s not all bad news, approximately 70% of people who take out a residential mortgage have done so on a fixed rate basis. These customers will not be instantly affected by the base rate rise from the historical low of 0.25%. But if you’re on a fixed rate mortgage, that doesn’t mean you can just sit back and relax. If your fixed term is soon to run out and you will be looking to get a new fixed-rate deal, the quicker you act the better rate you will secure. Rates are going to continue to rise over the next five years - so I’d advise locking in a low, fixed rate now.

Deals Are Still Close to the Lowest-Ever Levels

If you’re hoping to get on the property ladder, it will come as welcome news that there are still some fantastic products on the market. Please contact Bristol, Bath or Exeter Mortgages Online for a FREE Consultation to discuss your First Time Buyer, Remortgage or Buy to Let mortgage requirements.

Can Landlords Mitigate the Interest Rate Hike?

Landlords are already seeing their profits decrease as a result of recent tax changes and changing legislation, and today’s interest rate increase will simply add on more costs.

Mark Lawrinson, Regional Director at Portico says landlords can mitigate the hit by cutting their interest costs:

“Buy-to-let mortgage interest rates have dropped dramatically in recent years, so deals currently on the market will be a lot better than products arranged a few years ago. It’s sensible therefore to shop around and remortgage. That being said, landlords will now have to consider the new PRA rules.”

With large increases in property prices over the last five years, another tip is to get your rental property re-valued. This will make your lender recalculate your LTV, and a lower LTV means a better interest rate and a larger choice of lenders.

We will be delighted to discuss any of your mortgage or protection requirements with you.

For expert advice and more information or to book your FREE consultation please visit one of our websites, call or email.

Bristol Mortgages Online www.bristolmortgagesonline.com Tel 0117 325 1511

Bath Mortgages Online www.bathmortgagesonline.com Tel 01225 584 888

Exeter Mortgages Online www.exetermortgagesonline.com Tel 01392 690 888

Understanding Mortgage Affordability in 2026

By Caz Blake-Symes • February 16, 2026
we enter 2026, mortgage affordability remains one of the biggest concerns for homebuyers and homeowners alike. With interest rates, living costs, and lending criteria continuing to evolve, understanding what lenders look at when assessing affordability is more important than ever.

First home, faster with My First Mortgage from Santander

By Caz Blake-Symes • February 9, 2026
On 3 February, Santander are the first large lender to launch a First-time Buyer Mortgage over 95% LTV. It’s called My First Mortgage and is up to 98% LTV. Supporting FTBs is a key focus for us whilst lending responsibly.

Check out our January 2026 Newsletter!

By Caz Blake-Symes • January 19, 2026
This month’s edition is packed full of informative articles, including • Welcome and overview from Phil Clark • Base rate cut to 3.75%: what could it mean for mortgages? • Interest-Only Mortgages For Later Life. • Need Short-Term Property Finance? • What You Should Know About Second Charge Mortgages • Time to Remortgag

Thinking of Moving or Changing Your Mortgage in 2026?

By Caz Blake-Symes • January 6, 2026
Image courtesy of Freepix Happy New Year! Hope you all had a good Christmas Break and avoided the dreaded coughs and colds. I had the opportunity over the holiday to review many of the various property and finance reports available online, as well as those to which I subscribe. Pleasingly, the general tone is very opti

Season's Greetings from Phil Clark

By Caz Blake-Symes • December 20, 2025
I would like to wish you and your family a very Merry Christmas and a Happy and Healthy 2026

Base rate cut to 3.75%: what could it mean for mortgages?

By Caz Blake-Symes • December 18, 2025
The Bank of England meets every six weeks to decide what should happen to interest rates, with the aim of keeping inflation to its target and keeping the wider economy healthy. Today, Base Rate was cut from 4% to 3.75%.

House Price Index: November 2025

By Caz Blake-Symes • December 8, 2025
With the Budget uncertainty now lifted, buyers and sellers can return to making decisions about their next move. Removing the threat of a new annual property tax from 210,000 homes for sale will help revive market activity in higher-value areas. However, the lack of any stamp duty reform means homebuyers will continue

Check out our November newsletter!

By Caz Blake-Symes • November 28, 2025
Please click here to see our November newsletter This month’s edition is packed full of interesting articles, including What does the Budget mean for you? Interest-Only Mortgages For Later Life. Need Short-Term Property Finance? What is the Renters’ Rights Act, and what does it mean for tenants? What You Should Know About Second Charge Mortgages Time to Remortgage? Stunning 5-star Google Reviews! Let Us Help You If You Have Adverse Credit How to Contact Us You can also read more articles on our Blog. We hope you enjoy this Newsletter. If you have any queries, please call Phil Clark on 0117 325 1511 or email info@swmortgages.com

Budget 2025: Key points at a glance

By Caz Blake-Symes • November 27, 2025
Rachel Reeves has set out details of her second Budget since becoming Chancellor. Some measures from the yearly tax and spending plan had already been announced in the days leading up to the statement.

Interest-Only Mortgages For Later Life

By Caz Blake-Symes • November 19, 2025
We are thrilled to be able to offer this fantastic product through the Family Building Society. This interest-only mortgage gives those of retirement age and beyond the opportunity to free up equity from their home, without the huge costs often faced when considering Equity Release or a Lifetime Mortgage.