Friday 17 June 2022 7:16 AM UTC
LONDON June 17: The Bank of England (BoE) has raised UK interest rates to a 13-year high from 1% to 1.25%. This is because finances are being squeezed by the rising cost of living, driven by record fuel and energy prices.
The new rate rise means that homeowners with a typical tracker mortgage will have to pay about £25 more a month. Those on standard variable rate mortgages will see a £16 increase.
However, those mortgage-holders who have a fixed-rate deal have not been affected immediately.
Most borrowers are on fixed-rate mortgages and their repayments will not change immediately. However, when they come to the end of their existing deal they may find they have to pay more for their next loan. The Guild of Property Professionals estimates that 1.5m fixed-rate mortgages will end this year.
Jenny Ross, money editor at Which? speaking to Sky News said that those on variable rates should consider switching to a fixed deal now as they may find more competitive rates and could protect themselves from any future rate rises.
“Time is of the essence, though, as mortgage rates have been creeping up recently and are likely to carry on doing so,” she told Sky News.
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