The Bank of England has announced it is raising interest rates to what is the highest rate since the recession in 2008. After nine members of the Monetary Policy Committee voted by a majority of 7-2 on November 3, the base rate will now jump from what was 2.25 percent to 3 percent.
The 0.75 percent increase is the biggest interest rate rise since since 1989 and is also the eighth consecutive time that the Bank has hiked interest rates, with the base rate just 0.1% less than a year. The all-important decision was made by the Bank in a bid to control inflation amid the crippling cost of living crisis.
Millions of homeowners across the UK are now thought to be affected as mortgages rates could spike in line with the interest rate rise. The 0.75% increase is expected to raise monthly mortgage repayments for those who are on variable rates mortgage deals and other forms of borrowing.
