The Bank of England has increased its base rate to 5.25 per cent from 5 per cent - the 14th rate rise in a row
The Bank of England heaped further pressure on mortgage holders on Thursday as it hiked interest rates again in yet another bid to get inflation under control. The Bank warned of “crystallising” risks, which were pushing inflation upwards as it decided to increase its base rate to 5.25 per cent from 5 per cent - it is the 14th rate rise in a row.
However, in an unusual three-way disagreement, two members of the Bank’s decision-making Monetary Policy Committee voted to hike the rate further, while one wanted to keep it unchanged. The majority said that some of the risks of more persistent domestic inflation had “crystallised,” a word which the bank used repeatedly through its report on Thursday.
Top Money Stories Today What the rate rise means for mortgages Commenting on the rate rise and impact for mortgage holders and savers, Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Today’s rise piles further misery on homeowners with those on tracker mortgages seeing rises overnight. Standard variable rate mortgage holders may find their rates move up slightly less but, with budgets under strain, any increase is hugely unwelcome.
“As a result, it’s cheaper for lenders to secure a fixed rate, so they are passing those savings on. Any downward trend will be welcomed by people looking to fix their mortgage costs, though it’s fair to say people looking to remortgage are finding themselves in a very different world to the one they were in when they got their previous deal.”
Latest Personal Finance News What the rate rise means for annuities If you are considering an annuity, then today’s announcement could bring further good news with the potential for further income increases.
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