This week the Bank of England raised interest rates from .25% to .5%. This was the first increase since July 2007. This change will affect what borrowers pay and savers earn.
What does this mean for mortgages?
Mortgage payers could now be paying around £200/year more per £100,000 they owe. Around 57% of homeowners are currently on fixed-rate deals so they won’t see any immediate changes, as soon as these fixed-rate deals come to an end mortgage payers will notice a change in their monthly repayment.