How much your mortgage could go up by if Bank of England hikes interest rates again today
03.08.2023 - 05:23
/ manchestereveningnews.co.uk
Homeowners across the UK could be dealt a further blow today (August 3) as the Bank of England is expected to raise interest rates once again. After its meeting with the Monetary Policy Committee (MPC) in June, the Bank hiked the base rate to 5 per cent - the highest rate in 15 years.
The huge 0.5 per cent increase was made in a bid to bring inflation down towards the Government's target of 2 per cent but, as a result, many mortgage holders have since seen their monthly repayments soar to unaffordable costs. The BoE is now meeting later today to discuss the next potential interest rate rise, which is expected to mark the 14th consecutive time rates will have climbed.
However, economists are predicting that the rise may not be as much as the increase in June, with many expecting a 0.25 per cent rise. It comes as the Office for National Statistics (ONS) revealed that inflation fell to 7.9 per cent in June, down from 8.7 per cent in May - which is its lowest rate since March 2022.
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Whether it's a 0.25 or 0.5 per cent rise, mortgages that follow the base rate are likely to see a rise from Thursday, the Mirror reports. According to data collected by TotallyMoney, households are already forking out an extra £593 on mortgage costs on average each month when compared to December 2021.
TotallyMoney has broken down the potential rises mortgage holders could see if the base rate goes up again later today. The data shared is based on an average property price in November 2021 with a loan to value ratio of 75% in each region.
According to TotallyMoney, a 0.25 percentage point hike would mean the average homeowner on a variable rate
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