The Bank of England has increased base rate by 0.5 per cent to 3.5 per cent.
This is the ninth consecutive base rate rise since December 2021 and even before this afternoon’s news, the rate was already at its highest level for 14 years.
The worst may still be to come as many analysts suggest base rate could reach 4.5 per cent by the middle of next year.
Today’s rise is likely to hit most some 1.6m people on tracker and variable rate mortgages who will face an immediate increase in monthly payments.
The BBC calculates that today’s rise from 3.0 to 3.5 per cent would mean those on a typical tracker mortgage would pay about £49 more a month. Those on standard variable rate mortgages would face a £31 jump.
This would come on top of increases following the previous recent rate rises.
Compared with pre-December 2021, average tracker mortgage customers would be paying about £333 more a month, and variable mortgage holders about £210 more.
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.jpg)
.png)
Join the conversation
Jump to latest comment and add your reply
Oh great thanks a lot
Pass it on, and tell your tenants why
Yes will have to do that, but there is a time lag due to only doing annual increases. Mine were all increased in Sept and I notified my tenants in June. Next year I am going to tell them in March that there will be a much bigger increase in September, so they have time to make other plans if need be, either increase their income or find a cheaper place (if they can).
They can always work some more of the 168 hours available every week?
More like 45%
All going according to their great plan
The tenants are not going to like this 🤔
Ouch, more money to the Government in tax due to Section 24. And of course more borrowing costs.
As borrowers fixed deals finish next year then they will be sharing my pain.
Didn't see the need for this increase currently and certainly not 0.5%, they seem hell bent on being seen to be doing something. I shall read the decision process with interest.
Maybe if they had put the rates up back in 2014 onwards we would not be in such a mess.
Tenants will be hit hard with further rent increases! But not as hard as i've been hit, though in fairness I can afford this, I estimate I will break even if rates hit 5.5% with Section 24. Not including maintenance and other associated costs. Prior to section 24 break even was roughly 8% base rate.
Merry Christmas
Having read the decision making and listened to Andrew Bailey I am super unimpressed.
Just 2 voted for no change.
One wanted a higher rate.
Raising rates now is just adding to misery of homeowners with mortgages that are variable rates. It will make very little difference to inflation.
It is obvious that inflation will fall as we absorb these new costs.
How can you not spend money on food, heat and fuel. I don't think many are going out on a spending spree. Christmas presents yes, but only to be expected. Even so the rate fell 0.4%.
They should have just left it alone this time.
Cretins
Please login to comment