Interest rates are the main lever used by the Bank of England to try and slow inflation and the Bank of England was widely expected to increase its rate today, however many thought it would increase to 4.75 per cent rather then 5 per cent.
Further increases to the base rate are expected this year, with market’s now predicting that interest rates could peak at 6 per cent. Today’s decision will have an immediate impact on over 600,000 households on tracker mortgages who will see their monthly payments go up in line with the base rate. More than 700,000 households on standard variable rate mortgages are also likely to see their monthly payments increase, with manyOn top of that, more than 400,000 households in the UK will renew their fixed rate mortgages between July and September, with experts calling the expected dramatic rise in monthly payments a mortgage timebomb.This story is being updated.
Source: Loan Digest (loandigest.net)
💬 via ipaperviews This is a brutal attack on people with mortgages – the Bank of England is getting tough, writes jessiehewitson
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