Homeowners have been warned as interest rates soar after Bank of England increased its base rate from 2.25 per cent to three per cent, the highest for 14 years.
New Chancellor Jeremy Hunt warned of a prolonged recession as he said families will face “very tough” times as mortgage costs rise, but insisted he was clearing up the economic mess left by the Liz Truss mini-Budget fiasco.
As the Daily Record explained, those on fixed-rate mortgage holders are cushioned from the immediate impact of the base rate rise. However, there are still concerns that people will have to remortgage their home onto a much higher rate when they leave their current deal. This comes as the Bank said on Thursday, November 3 that some households could see their interest payments increase by around £3,000 a year if they do take out a loan that is 3.5 percentage points higher.
