Bank Rate’s Gone Up to 4%. Here’s What That Actually Means If You’re Moving in Stockport, South Manchester or Cheshire
On 5 November, the Bank of England put the base rate up to 4%, from 3.75%. It was an 8-1 vote on the committee that makes the decision, with most members going for the smaller rise and one pushing for more. Inflation’s been sitting at 3.5% and the Bank is expecting that it could edge up towards 5% by the middle of next year, so this wasn’t exactly a shock to anyone watching the numbers.
What does that actually mean for you though, if you’re not glued to the FT?
If you’re on a fixed rate mortgage right now, nothing changes immediately. Brokers are saying a lot of lenders had already priced this rise into their fixed deals before it was even announced, which is why you might not see a dramatic jump this week. If you’re on a tracker or standard variable rate, you’ll likely feel it more directly and probably fairly soon.
If you’re coming up to remortgage in the next few months, this is worth a proper conversation with a broker now rather than later. Fixed rates have been described as sitting at a three year high, and while nobody can tell you exactly where they’ll land, waiting and hoping usually isn’t a strategy.
If you’re buying for the first time or moving up the ladder in Stockport, South Manchester or Cheshire, here’s the honest version: affordability calculations will be a bit tighter than they were a year ago, but demand in this area hasn’t gone anywhere. Good properties in places like Bramhall, Heaton Moor, Marple and Hazel Grove are still moving quickly, because people want to live here, rate rise or not. Houses for sale in Edgeley, Cale Green and surrounds are still flying out with many going for over asking prices. It just means getting your mortgage in principle sorted early matters more than ever, so you know exactly what you’re working with before you fall in love with a house.
If you’re a landlord with a mortgage on a rental property, run your numbers again properly rather than assuming last year’s figures still hold. A decent broker can talk you through fixed versus tracker now, and it’s worth that conversation even if you’re not planning to remortgage for a while yet.
None of this is a reason to pause your plans. Rate decisions come round every six weeks or so (the next one’s 17 December), and the market has a habit of carrying on regardless. The only real mistake is going into a purchase, sale or remortgage without understanding your own numbers properly.
If you want to talk through what this means for your specific situation, whether you’re buying, selling or managing a rental in this area, get in touch. I’m not a mortgage broker and won’t pretend to be one, but I can point you towards good ones and help you think through the property side of the decision with a clear head.
