Market Update November 2022: 
As you will have seen in the news and our social media this month, the Bank of England (BoE) has 
increased its base rate again for the 7 th time this year, increasing by 0.75% from 2.25% to 3.00%. 
Notably, it has increased from 0.10% in March 2020 to 3.00% as of Thursday 3 rd November 2022, the 
highest we have seen the base rate since November 2008, 14 years ago. 
In a time of economic unrest, debatably driven by parliamentary uncertainty, the changes that have 
occurred in the recent months have had and will continue to have various economic effects, 
arguably both positively and negatively. But in attempt to “stay in my lane” I wanted to try and 
outline, explain and provide an opinion of the mortgage market as it currently stands. 
Practically, this increase will mean that for anyone whose mortgage is on a Base Rate Tracker, your 
mortgage payments will increase: for every £100,000 of borrowing your annual mortgage cost will 
increase by £750, approximately £62 a month. It is worth pointing out however that in a recent 
mortgage product search there were a vast amount of Tracker rate products sitting at 1.5% above 
BoE base rate (BoEBR). In this instance, even with the increase 0.75% this would only lead to a 
mortgage rate of 4.5%, which in the landscape of mortgage products is still currently quite 
competitive, but trackers don’t come without any risk. Further increases would mean higher 
monthly payments. 
For anyone who is sitting on a discount rate or variable rate this is also highly likely to increase. Your 
mortgage rate is linked to the lenders Standard Variable Rate (SVR) which, although not absolutely, 
is typically linked to the BoEBR in terms of its movement patterns, simply as the BoEBR increases so 
will lenders SVR. In these instances, it is always worth contacting your lender or keeping an eye out 
for the increases that will likely be made in the near future as to how much your monthly payment 
will change. 
Fixed rate deals are slightly more simple. Your interest rate will not change until the date that the 
fixed rate expires. I would urge people whose fixed rate is coming to an end withing the next 3 to 6 
months to reach out and speak to a mortgage expert in terms of what your options are and what the 
likely increases will potentially look like. Unfortunately increases are highly likely. If you have been 
fixed in in the last 2 or 5 years, the fixed rate market is in a very different place now than it was 
when you went into it. Importantly however the driver fixed rate market change is not necessarily 
the movement in the BoEBR. 
As alluded to in the introduction, it is proving far more challenging to try and predict what will 
happen with mortgage rates in the near future, your crystal ball is as good as mine. However, the 
overriding feeling is that increases are proving to be more of safe bet. In many ways Mortgage 
Advisers have had it easy in the last few years as mortgages were so low, they effectively sold 
themselves. It’s now that we have a responsibility to back up our reputations and provide 
meaningful, informed, considerate advice so please get in touch if you have any questions or 
This content will only be shown when viewing the full post. Click on this text to edit it. 
Share this post:

Leave a comment: 

Our site uses cookies. For more information, see our cookie policy. Accept cookies and close
Reject cookies Manage settings