Bank of England base rate: how are mortgages affected?
The Bank of England’s base rate is a very important figure at the heart of the UK economy. It determines how expensive it is for banks to lend and borrow money, and it influences interest rates on consumer loans and saving accounts.
With the current economic situation looking uncertain, there has been much talk about which way the base rate will go. On the one hand, the Bank of England recently dropped the base rate to encourage mortgage lenders to offer cheaper deals and reignite demand for mortgages.