Martin Lewis has issued a warning as millions of homeowners could see hundreds of pounds added to their mortgage payments. The Money Saving Expert tweeted after the Bank of England raised interest rates from 0.75 percent to one percent amid soaring inflation.
The base rate is used by banks to determine how much they charge you when you borrow money, as well as how much return you get back on your savings. For homeowners, it can have a direct impact on your mortgage repayments, depending on the type of deal you’re on, as the Mirror reports.
A Bank of England spokesperson said: "We expect inflation to rise further to around 10 percent this year. Prices are likely to rise faster than income for many people. That means that people will be able to buy less with their money."
