'My mortgage is going up £200': How rising interest rates are hitting people's pockets
Summary
The Bank of England raised interest rates by a quarter of a percentage point, its first increase in more than three years, as energy, food and fuel prices rise amid the Iran war. The increase and higher mortgage rates are adding to household costs, with people interviewed by the BBC describing higher repayments and limited room to cut spending.Key Facts
- The Bank of England’s rate increase may make mortgages, credit cards and personal loans more expensive, while improving savings rates.
- Peter Gill, who has a variable-rate mortgage, expects his monthly payments to rise by about £45 after the increase.
- Gill says his family is also facing higher food, gas, electricity and business costs.
- Dawn Fazackerley-King is moving from a five-year fixed mortgage at 1.4% to a two-year deal at 5.69%.
- Fazackerley-King expects her mortgage payments to rise by about £200 a month.
- Fazackerley-King and her husband have a joint income of about £70,000 and say they have little room to reduce spending or take on more work.
- Mortgage broker David Hollingworth says fixed-rate deals had already risen as markets anticipated higher interest rates.
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