Millions of homeowners across the UK are bracing themselves for a rise in their mortgage bills after the Bank of England increased interest rates to 3%.
The base rate is rising from 2.25% to 3% - the biggest interest rate rise since 1989. The decision was made by the Bank on Thursday in a bid to control inflation amid the crippling cost of living crisis.
The 0.75% increase is expected to raise monthly mortgage repayments for those who are on variable rate mortgage deals and other forms of borrowing. Mortgage rates soared in September after the mini-budget was delivered by former Chancellor, Kwasi Kwarteng, while former Prime Minister Liz Truss was in power.
