The Bank of England’s Monetary Policy Committee has announced today that interest rates will increase by 0.25% to 0.75%, in a unanimous vote.
Today’s news will be welcomed by savers in general but not for those saving to get on the property ladder as any increase in savings rates won’t bridge the gap on rising house prices.
Homeowners not on fixed term mortgages will see an average rise of around £270 on their yearly mortgage payments.
The increase will be manageable for most homeowners, those that have stretched themselves financially to get on the property ladder or those aspiring homeowners may find the interest rate increase a bit more difficult to absorb.
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