London homeowners on a typical £300,000 tracker mortgage face paying £420 a month more than a year ago in the run-up to Christmas after the Bank of England raises interest rates on Thursday.
The Bank is forecast to increase the cost of borrowing by 0.75 per cent from 2.25 per cent to three per cent — the biggest hike in 33 years — when its monetary policy committee meets to consider its response to soaring inflation.
