What is the Bank Of England base rate....? What interest rate should I use in the calculator.....?
What is the Bank Of England base rate....?
The rate at which interest is charged on a mortgage is relative to the Bank of England base rate. This is currently set at: 5.00% (Last adjusted 8th May 2008, see Bank Of England website for additional info. This is an external site, as such Mortgage Talk is not responsible for the content of this site).
What interest rate should I use in the calculator.....?
Lenders are free to decide the amount by which they will alter their own interest rates, in relation to the movements in the BOE base rate. Typically a lender will set its Standard Variable Rate (SVR) a certain percentage above the base rate.
The SVR will vary per lender but given that the current BOE base rate is: 5.00%, a typical SVR may be: 6.99%.
The overall cost for comparison is 7.3% APR.
The actual rate available will depend on your circumstances. Ask for a personalised illustration.
The example SVR of 6.99% is only a starting point when performing your initial calculations. In normal circumstances Mortgage Talk would strive to place a client on one of the numerous discount or incentive products available, which can offer more preferable rates or features (such as a limited fixed rate period).