It comes as a Bank of England interest rate review takes place later this month
According to financial data firm Moneyfacts, the average two-year fixed rate on a £200,000 mortgage over a 25-year term is now 5.64%. That compares with 5.34% before the latest inflation data.
Moneyfacts said the interest charge has hiked by 0.3 percent, with recent data showing that inflation has not come down as quickly as expected. Inflation is the rate at which prices for goods and services rise. The higher the level of inflation, the less your money travels.Experts predicted the Bank of England will raise rates higher than previously thought, from their current 4.5% to as high as 5.5%. Consequently, many lenders have raised mortgage rates and removed deals.
The Bank of England has raised interest rates 12 times in a row, so it has been steadily increasing over the last 18 months. The interest rate is reviewed every six weeks. A nine-person committee, the Monetary Policy Committee, determines the Bank of England base rate. The next decision on the interest rate will be announced this month, on Thursday June 22.
Meanwhile, higher food prices have been partly blamed on Russia's war with Ukraine as well as poor harvests in some European countries, indirectly increasing the cost of living in the UK.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Landmark deal set to empower more women and girls to reach their full potential in cricket and beyondTHE ENGLAND and Wales Cricket Board (ECB) and Metro Bank have created a landmark moment...
Read more »
House prices in Yorkshire city found to be seven times the average annual salaryPeople now have less money to spend on the costs of moving, such as removal vans and putting their own homes up for sale, while the interest rate hike means monthly mortgage payments are higher
Read more »
Universal basic income: Plans drawn up for £1,600 a month trial in EnglandThirty people would get a monthly lump sum for two years, under a think tank's scheme in England.
Read more »
Universal basic income of £1,600 a month to be trialled in EnglandPeople in England will be given a £1,600 lump sum with no conditions every month for two years under a trial of universal basic income (UBI).
Read more »
Tongue and Bairstow in England Ashes squadEngland name an unchanged squad from the one-off Test against Ireland for the first two Tests of the Ashes.
Read more »
England football star 'pays £20k after affair and abortion'A married Premier League footballer who plays for England reportedly paid an influencer £20,000 in hush money after an affair that led to her getting an abortion.
Read more »