31 Oct

Interest rates could impact 5m homeowners

Interest rates could impact 5m homeowners

If the Bank of England takes the step of raising interest rates it could have a significant impact on five million homeowners across the UK.

Mortgage Broker Trussle estimates property owners with variable rate mortgages could end up paying £990 million over the next 12 months, if the Monetary Policy Committee votes to increase the base rent from 0.25 per cent to 0.5 per cent.

It would be the first change to the interest rate in a decade and it is expected London homeowners will be the hardest hit, with the average variable rate set to see a £30.50 increase in their monthly repayments.

“It’s looking ever more likely that the Bank of England will raise interest rates, either in November or December. This will impact anyone on a variable rate mortgage. While the increase is only likely to be small at first, borrowers on variable rate deals should consider how they’ll cover the extra cost, especially those on a tight budget or with a large outstanding mortgage,” explained Ishaan Malhi, Trussle chief executive officer.

He added: “With more rate rises potentially on the horizon, those nearing or beyond the end of their initial mortgage term should be thinking about switching to a more competitive deal.”ADNFCR-1222-ID-801841509-ADNFCR

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