Bank of England historic interest rates

I often get asked whether I think rates will go up or down. Although there is no right or wrong answer it’s true to say that rates have never been as low as they have in recent years.  Taking a look at the Bank of England historic interest rates makes for scary reading though.

Anyone under the age of 30 will probably not remember when interest rates were over 2%, much less when they were double digits.

Being born in the late 70s, I still remember coming home from school one day to find my mum in tears as the Bank of England base rate had gone up again.  It hit 14.88% in October 1989 and stayed at that rate for a year.

It must have been a scary time for mortgage borrowers.

1989 vs 2018

To give a quick comparison, if you borrowed £200,000 over 25 years at 14.88% you’d be paying back around £2,541 every month.

Borrowing the same against a rate of 0.75% which is the current Bank of England base rate as I write this, the repayments would be £731 per month.

That’s a staggering £1,810 difference in payments each and every month.

Bank of England historic interest rates

Yet that’s still only using the highest rate that I can remember in my lifetime.  Going back further when I was just a toddler the rate hit 17%.  That was November 1979.

Seeing figures like that probably goes some way to explaining why I’m an only child – I doubt my parents could have afforded any more kids with that kind of rate!

I’ve listed the Bank of England Base Rate History further down the page.

Will the Bank of England base rate go up?

The answer, in short, is yes.  Probably.

Mortgage illustrations these days have a section which shows the APRC (which stands for Average Percentage Rate of Charge). This is based on the highest rate in the past 20 years.

It provides a scary glimpse as to what a repayment on a mortgage would be if rates rose.

For those who have experienced higher rates, it’s a reminder of where we’ve been.  For first time buyers and those young enough to only know the lower rates, it’s often a shock.

Fixing your mortgage rate, whether it’s for 2 years, 10 years or somewhere in between can help.  It means that you know how much you are paying irrelevant of the Bank of England rate changes.

Having a variable rate leaves borrowers open to higher repayments though.

Would you be able to cope with big rate rises?

Historic interest rates

YearRate at
year end
197917.00%
198014.00%
198114.38%
198210.00%
19839.06%
19849.50%
198511.38%
198610.88%
19878.38%
198812.88%
198914.88%
199013.88%
199110.38%
19926.88%
19935.38%
19946.13%
19956.38%
19965.94%
19977.25%
19986.25%
19995.50%
20006.00%
20014.00%
20024.00%
20033.75%
20044.75%
20054.50%
20065.00%
20075.50%
20082.00%
20090.50%
20100.50%
20110.50%
20120.50%
20130.50%
20140.50%
20150.50%
20160.25%
20170.50%

Information taken from Mortgage Strategy.

Bank of England Base Rate History

Date ChangedRate
20 Jan 7511.25
27 Jan 7511.00
10 Feb 7510.75
17 Feb 7510.50
10 Mar 7510.25
24 Mar 7510.00
21 Apr 759.75
05 May 7510.00
28 Jul 7511.00
06 Oct 7512.00
17 Nov 7511.75
01 Dec 7511.50
29 Dec 7511.25
05 Jan 7611.00
19 Jan 7610.75
26 Jan 7610.50
02 Feb 7610.00
09 Feb 769.50
01 Mar 769.25
08 Mar 769.00
26 Apr 7610.50
24 May 7611.50
13 Sep 7613.00
07 Oct 7615.00
22 Nov 7614.75
20 Dec 7614.50
29 Dec 7614.25
10 Jan 7714.00
24 Jan 7713.25
31 Jan 7712.25
03 Feb 7712.00
10 Mar 7711.00
21 Mar 7710.50
31 Mar 779.50
12 Apr 779.25
18 Apr 779.00
25 Apr 778.75
02 May 778.25
16 May 778.00
08 Aug 777.50
15 Aug 777.00
12 Sep 776.50
19 Sep 776.00
10 Oct 775.50
17 Oct 775.00
28 Nov 777.00
09 Jan 786.50
12 Apr 787.50
08 May 788.75
15 May 789.00
08 Jun 7810.00
09 Nov 7812.50
08 Feb 7914.00
01 Mar 7913.00
05 Apr 7912.00
13 Jun 7914.00
15 Nov 7917.00
03 Jul 8016.00
25 Nov 8014.00
11 Mar 8112.00
25 Aug 8112.69
15 Sep 8114.00
12 Oct 8115.00
28 Oct 8115.13
06 Nov 8115.06
09 Nov 8114.63
25 Nov 8114.56
04 Dec 8114.38
18 Jan 8214.31
19 Jan 8214.25
20 Jan 8214.13
21 Jan 8214.00
22 Jan 8213.88
22 Feb 8213.81
25 Feb 8213.63
10 Mar 8213.25
16 Apr 8213.13
19 Apr 8213.00
20 Apr 8213.13
08 Jun 8212.63
09 Jul 8212.50
12 Jul 8212.25
13 Jul 8212.13
21 Jul 8212.06
26 Jul 8211.94
28 Jul 8211.81
29 Jul 8211.75
30 Jul 8211.63
02 Aug 8211.56
04 Aug 8211.50
16 Aug 8211.38
17 Aug 8211.25
24 Aug 8211.13
25 Aug 8211.00
26 Aug 8210.88
27 Aug 8210.63
27 Sep 8210.50
28 Sep 8210.38
29 Sep 8210.25
30 Sep 8210.13
12 Oct 829.63
01 Nov 829.38
02 Nov 829.13
26 Nov 8210.00
12 Jan 8311.00
15 Mar 8310.56
13 Apr 8310.31
14 Apr 8310.06
13 Jun 839.81
14 Jun 839.56
09 Aug 839.44
10 Aug 839.56
03 Oct 839.06
07 Mar 848.81
14 Mar 848.56
10 May 849.06
29 Jun 848.88
06 Jul 8410.00
11 Jul 8412.00
08 Aug 8411.50
09 Aug 8411.00
16 Aug 8410.75
17 Aug 8410.50
05 Nov 8410.00
19 Nov 849.75
23 Nov 849.50
14 Jan 8511.88
28 Jan 8513.88
20 Mar 8513.38
28 Mar 8512.88
19 Apr 8512.38
11 Jul 8511.88
26 Jul 8511.38
15 Jan 8612.38
19 Mar 8611.38
11 Apr 8610.88
18 Apr 8610.38
23 May 869.88
15 Oct 8610.88
09 Mar 8710.38
18 Mar 879.88
28 Apr 879.38
08 May 878.88
06 Aug 879.88
23 Oct 879.38
04 Nov 878.88
03 Dec 878.38
01 Feb 888.88
17 Mar 888.38
08 Apr 887.88
17 May 887.38
03 Jun 887.88
10 Jun 888.38
24 Jun 888.88
07 Jul 889.88
21 Jul 8810.38
08 Aug 8810.88
25 Aug 8811.88
25 Nov 8812.88
25 May 8913.75
31 Aug 8913.84
04 Sep 8913.88
08 Sep 8913.75
06 Oct 8914.88
08 Oct 9013.88
13 Feb 9113.38
27 Feb 9112.88
22 Mar 9112.38
12 Apr 9111.88
24 May 9111.38
12 Jul 9110.88
04 Sep 9110.38
05 May 929.88
22 Sep 928.88
16 Oct 927.88
13 Nov 926.88
26 Jan 935.88
23 Nov 935.38
08 Feb 945.13
12 Sep 945.63
07 Dec 946.13
02 Feb 956.63
13 Dec 956.38
18 Jan 966.13
08 Mar 965.94
06 Jun 965.69
30 Oct 965.94
06 May 976.25
06 Jun 976.50
10 Jul 976.75
07 Aug 977.00
06 Nov 977.25
04 Jun 987.50
08 Oct 987.25
05 Nov 986.75
10 Dec 986.25
07 Jan 996.00
04 Feb 995.50
08 Apr 995.25
10 Jun 995.00
08 Sep 995.25
04 Nov 995.50
13 Jan 005.75
10 Feb 006.00
08 Feb 015.75
05 Apr 015.50
10 May 015.25
02 Aug 015.00
18 Sep 014.75
04 Oct 014.50
08 Nov 014.00
06 Feb 033.75
10 Jul 033.50
06 Nov 033.75
05 Feb 044.00
06 May 044.25
10 Jun 044.50
05 Aug 044.75
04 Aug 054.50
03 Aug 064.75
09 Nov 065.00
11 Jan 075.25
10 May 075.50
05 Jul 075.75
06 Dec 075.50
07 Feb 085.25
10 Apr 085.00
08 Oct 084.50
06 Nov 083.00
04 Dec 082.00
08 Jan 091.50
05 Feb 091.00
05 Mar 090.50
04 Aug 160.25
02 Nov 170.50
02 Aug 180.75

Information taken from the Bank of England.

Call me for free mortgage advice.

Dan the Mortgage Man

07837 820 894