A warning has been issued to homeowners who will face paying almost £10,000 a year more on their mortgage if interest rates keep going up.
Interest rates are now expected to rise to 6% next year - well above the 1.5% rate projected just months ago. Last week, the Bank of England hiked its base rate to 2.25% - its highest level in 14 years - as it battles to bring down soaring inflation.
The base rate is important because it is what the central bank charges other banks and lenders. In turn, this then affects the rates banks charge you, as their customer - so when interest rates are higher, borrowing becomes more expensive.
