An average two-year fixed-rate mortgage has increased by £35 a month in just a few weeks.
According to financial data firm Moneyfacts, the average two-year fixed rate on a £200,000 mortgage over a 25-year term is now 5.64%. That compares with 5.34% before the latest inflation data.
Moneyfacts said the interest charge has hiked by 0.3 percent, with recent data showing that inflation has not come down as quickly as expected. Inflation is the rate at which prices for goods and services rise. The higher the level of inflation, the less your money travels.
READ MORE: Join the FREE Manchester Evening News WhatsApp community
Experts predicted the Bank of England will raise rates higher than previously thought, from their current 4.5% to as high as 5.5%. Consequently, many lenders have raised mortgage rates and removed deals.
The Bank of England has raised interest rates 12 times in a row, so it has been steadily increasing over the last 18 months. The interest rate is reviewed every six weeks.
A nine-person committee, the Monetary Policy Committee, determines the Bank of England base rate. The next decision on the interest rate will be announced this month, on Thursday June 22.
Meanwhile, higher food prices have been partly blamed on Russia's war with Ukraine as well as poor harvests in some European countries, indirectly increasing the cost of living in the UK.
READ NEXT:
'We bought our first house after renting for 20 years - we thought we'd be stuck in a trap forever'
'We bought a house on a hill with stunning views and turned it into our dream family home'
'We sacrificed our twenties and worked seven days a week to build our dream home from scratch'
First-time buyer transforms 'worst house on the street' into something beautiful
'I turned my boring house in Salford into a boho-style home with bargains from Facebook'
