Homeowners across the UK could be dealt a further blow today as the Bank of England is expected to raise interest rates once again. After its meeting with the Monetary Policy Committee in June, the Bank hiked the base rate to 5 per cent - the highest rate in 15 years.
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 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.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.
Mortgage costs after 0.25 per cent rise According to TotallyMoney, a 0.25 percentage point hike would mean the average homeowner on a variable rate will need to fork out an additional £32 per month, with repayments up by £593 from November 2021. Mortgage costs after 0.5 percent rise With a 0.5 percentage point rise - which is less likely - the average UK homeowner on a variable rate will be paying an additional £64 a month for their mortgage. Since December 2021, an increase of 0.5 percentage points would see mortgage holders paying £625 more since November 2021.