News that interest rates have risen from 4.5% to 5% is a bitter blow for homeowners, as it will inevitably mean another hike in the cost of their mortgage payments.
It's the 13th time the Bank of England has raised rates in the past 18 months after it first lifted them from record lows of 0.1% in December 2021, and millions of households are bracing themselves for mortgage pain as the cost of their monthly costs soar again.
The spiralling interest rates have meant that anyone taking out a two-year deal now on a typical £200,000 mortgage would pay an extra £65 a month compared with just four weeks ago and an extra £313 compared with this time last year, according to This Is Money. And the market is in chaos as lenders pull, withdraw and re-price deals every few days, causing uncertainty and stress for home buyers and the 1.5 million homeowners who need to remortgage this year.
