Bank of England Rises Interest Rates to 2.25% - Highest since 2008
In the News
The Bank of England have just announced it has increased the interest rates by 0.5% up to 2.25% which is now the highest interest rate since 2008. There were rumours that they were raising them 0.75% but they opted for a half a percent.
On an average £100,000 mortgage that's on a standard variable rate, the payments will increase by around £24 per month. It doesn't sound much but with steady increases from December 2021, it all adds up.
Has this latest increase affected you or made you think to look for a fixed rate mortgage?
They are only going one way at the moment, I would expect them to increase in November and December, good news for savers. Hope they stop at 5 percent giving savers a chance against inflation and not up to 15 percent for the People with mortgages.
Won't be a problem for me as the house is bought.
I hope it smashes the Buy To Let people.
The worst thing about all this is that I don’t see how it will stop and who will be the people to stop it feel really bad for the younger generation it’s hard enough without constant extreme changes
Unfortunately the banks are very slow to pass the extra rates on to savers. Something needs to be done as they have suffered for years
jillylovesyou Yeah if there was a law that savings rates must increase at the same time as mortgage rate increases that would at least be fairer. If they put 0.5% extra on the mortgage rate they also have to put it on the savings rate. However that said its a competitive market and people will move to the higher savings rate quickly at a competitor.
Sadly I remember having a mortgage with a 16% bank of interest rate, it was terrible but we did get through it, mind you the rates & energy bills weren't so high!
tumblespots I also had a 16%+ ten year mortgage (started 1973) when paid off I'd paid back over three times as much as borrowed. Fortunately for those of us paying what by today's standards would be considered extortionate our houses increased in value during that period.
I'm glad we are on a fixed rate interest for our mortgage for the next few years. I remember my parents and my mother in law telling me about having mortgage rates of 15% interest. My mother in laws monthly bill went up by £200 a month overnight.
MrsCraig That’s the time I lost my house. I feel so sorry for the youngsters of today. My son is currently looking for a house to buy. Not sure have all this will effect him.
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