Millions of mortgage holders are facing uncertainty in the coming months after the Bank of England raised interest rates again. The bank raised its base rate by half a percentage point to 5% on Thursday - a 15-year high.
The bank said the increase - the 13th in a row - was aimed at combatting stubbornly high inflation, which remained at 8.7% in May, far above the target figure of 2%. It has not ruled out further hikes and said it would "monitor closely indications of persistent inflationary pressures in the economy as a whole."
The situation leaves millions of homeowners and first-time buyers facing an uncertain future, with the increase likely to lead to higher mortgage rates for those looking to buy and potentially massive hikes in monthly payments for those coming off existing deals. You can get more story updates straight to your inbox by subscribing to our newsletters here.
