 will raise rates by 0.25 or 0.5 percentage points - the latter of which would take it to 6%. Either way, those with mortgages that follow the base rate are likely to see a rise from Thursday. According to data collected by TotalMoney, households are on average forking out an extra £593 on mortgage costs each month when compared to December 2021. TotalMoney has broken down the potential rises mortgage holders could see when the base rate goes up on Thursday. The data shared was based on an average property price in November 2021 with a loan to value ratio of 75% in each region. According to TotalMoney, a 0.25 percentage point hike would mean the average homeowner on a variable rate will need to fork out an additional £32 per month, with repayments up by £593 from November 2021. Unsurprisingly, Londoners will feel the biggest impact where the average house price was £519,934, meaning a 0.25 percentage points increase would add an extra £61 per month to repayments, meaning the average homeowner would now be paying £1,139 per month more than before the hikes began. With a 0.5 percentage point rise - which is less likely - the average UK homeowner on a variable rate will be paying an additional £64 a month for their mortgage. Since December 2021, an increase of 0.5 percentage points would see mortgage holders paying £625 more since November 2021. Alastair Douglas, CEO of Tot){kind=link}
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According to data collected by TotallyMoney, households are on average forking out an extra £593 on mortgage costs each month when compared to December 2021
The Bank of England is set to raise interest rates again this week in what could spell more bad news for millions of mortgage borrowers.
Inflation has fallen by more than expected but even with this, the Bank of England is poised to raise its base rate again. The expected hike is set to be the fourteenth consecutive rise since December 2021. The base rate currently sits at 5%.