Martin Lewis has issued a warning to everyone with a mortgage and savings account after the Bank of England hiked interest rates for the eighth time in a row on Thursday. The Bank’s base rate has now increased to 3% from 2.25%, its highest for 14 years.
The consumer champion took to social media shortly after the announcement to offer immediate insight and warn variable and tracker rate mortgage payers they can expect to see their payments increase by £40 per month/ £480 per year for every £100,000 of their mortgage. He also warned people with a savings account that most of the big banks “will continue to pay diddly squat, so ditch and switch”.
The Bank of England also warned that the interest rate hike could add around £3,000 per year to mortgage bills for those households that are set to renew existing fixed rate. It said the UK could be on course for the longest recession since reliable records began in the 1920s.
