The Bank of England has increased the Base Rate for the fifth time this year as inflation hits 9.4%, the highest level since 1982. What will this mean for military mortgage interest rates for the foreseeable future?


In the ongoing effort to curb inflation levels back to the target of 2%, the Bank of England increased the Base Rate (BBR) for the fifth time this year. Now at 1.75%, it’s the largest single rate rise since 1995.

Amidst speculation that today’s Monetary Policy Committee (MPC) meeting could have seen the Base Rate increase to just 1.50%, the Bank of England predicts that inflation will continue to rise throughout the Autumn with a peak in Winter. The Bank also anticipates that it will not get back down to its 2% goal for the next two years – as such, with another MPC meeting this September, it would not be amiss to predict another BBR rise next month.

What does this mean for mortgage interest rates?

Many industry experts, anticipate interest rates hit an average of the high 4%s, and can even see some, but not many, breaching the 5% mark with rates s to plateau in the mid 4%s through to Q2 in 2023, after which rates may finally decrease again, but certainly not to the low levels we saw at the end of 2021.

Predications are not certain, and navigating this complicated market can be extremely difficult at the moment, especially with delays to mortgage applications. Absolute extended the cashback to its clients who re-mortgage through our partners Mortgages for Business as part of a range of measures designed to help clients combat the cost of living crisis. Our partners have access to over 8000 different mortgage rates available across the market. For more information contact us.ÂÂ