Bank of England base rate increased to 4.5%
The Bank of England's Monetary Policy Committee (MPC) has increased the base rate from 4.25% to 4.5%.
The Bank's move - the 12th consecutive rise in the cost of borrowing since December 2021 - lifts its rate from 4.25% to 4.5% - its highest level in more than 14 years.
The MPC voted by a majority of 7–2 to increase Bank Rate by 0.25 percentage points. Two members preferred to maintain Bank Rate at 4.25%.
The base rate hike will mean an instant increase in mortgage costs for borrowers on tracker or variable mortgages, with rates moving in line with the Bank of England's decisions.
The Bank of England is still pushing to meet the inflation target of 2% - which seems a long way off, seeing as inflation is currently at 10.01%.
Aaron Strutt, product director at Trinity Financial, says: "Mortgage rates have been rising over the last few weeks, and many banks and building societies have been factoring in this base rate rise.
"I recently attended a market update with an economist from Kensington Bank, and he thought fixed rates are likely to stay at their current prices over the next six months."
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
