![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/martin-lewis-explains-what-bank-of-england-rate-rise-means-for-you/&media=https://uknews.evprotec.com/wp-content/uploads/2022/11/Untitled-design-5.png&description=MARTIN Lewis has explained what the historic Bank of England interest rate hike this week means for your mortgage. The BoE yesterday raised interest rates by 0.75 percentage points to 3% - the biggest increase since the 1980s. Martin Lewis has explained what the historic Bank of England price hike means for your mortgageCredit: ITV Speaking on ITV's Good Morning Britain, the Money Saving Expert explained how the hike will affect mortgages. He warned that homeowners on a variable, discount or tracker rate mortgage will see a rise in what they pay "pretty quickly". Martin said: "My rule of thumb for how much it will go up by o a typical repayment mortgage is to expect to pay around £40 a month more per £100,000 of a mortgage." So, over a year that would be around £480 per £100,000 of a mortgage. If you're on a fixed-rate mortgage, your rate is locked in for now so you won't see any change until you come to renew. Martin said: "What you will see is - and what you absolutely need to be prepared for - is you need to know the date when your fixed rate mortgage is going to end." He recommended preparing three to six months before that happens and looking at what you can do. "In no uncertain terms though, anyone who fixed over the last couple of years needs to be expecting to pay very substantially more when their current fix comes to an end," he said. So, preparing your finances for that rate hike when it happens is really important. But despite this being the biggest interest rate rise in 33 years, there may be some relief on the way for homeowners. The Bank used the announcement as an opportunity to revise its predictions on how much interest rates will rise in future, and this may bring some relief on mortgage bills. After the mini-Budget, it had warned that rates would hit 6% next year, which caused mortgage lenders to hike fixed bills. However, yesterday it said that rates would hit a maximum of 4.6%. This opens the way for lenders to reduce some rates. Lenders price){kind=link}
MARTIN Lewis has explained what the historic Bank of England interest rate hike this week means for your mortgage.
The BoE yesterday raised interest rates by 0.75 percentage points to 3% – the biggest increase since the 1980s.
Speaking on ITV’s Good Morning Britain, the Money Saving Expert explained how the hike will affect mortgages.
He warned that homeowners on a variable, discount or tracker rate mortgage will see a rise in what they pay “pretty quickly”.
Martin said: “My rule of thumb for how much it will go up by o a typical repayment mortgage is to expect to pay around £40 a month more per £100,000 of a mortgage.”