MORTGAGE rates are set to rise within hours after the Bank of England hiked rates – and homeowners are being urged to check exactly how much their repayments are about to go up by. The Bank of England has raised today the base interest rate from 1.25% to 1.75% – the biggest increase in 27 years.
1The Bank of England’s decision will determine how much mortgage rates will rise by
The interest rate was at a historic low of 0.10% during the pandemic, but has since been increased six times as the Bank tries to tackle inflation.
The Bank of England’s monetary policy committee (MPC), which has nine members, today voted eight-to-one in favour of a rise to 1.75%.
The Bank also warned that the UK was set to enter recession this winter, with the economy forecast to fall by as much as 2.1%.
Inflation is likely to peak at 13.3% in October, it said.
The dire outlook will see household incomes fall for the next two consecutive years – the first time this has happened since records began in the 60s.
Unemployment will start to rise again next year, according to the projections.
Jane Tully, director at charity the Money Advice Trust, added: “Today’s interest rate rise will add to the worries of homeowners already struggling with soaring prices.
“October’s energy price rise is just around the corner and with inflation predicted to continue to increase into next year, there is littl …