The Bank of England has once again raised interest rates – this time by 0.5 percentage points – taking the base rate to 3.5%. This is the ninth rise since last December. So what does this mean for your finances?

How will it affect mortgage payments?

Today’s move is yet more bad news for the approximately 2.2 million people on a variable rate mortgage, who are already having to contend with a raft of rising costs. Many now face paying hundreds of pounds extra a year.

My first rule whenever I looked at getting a mortgage.

 

Work out what the payments would be in the case of an interest rate increase of upto 5%.

12 hours ago, Black Ops said:

So what does this mean for your finances?

Not much really, but I don't have a mortgage or enough savings to make a big difference on savings. Hopefully it will be a catalyst to bring inflation down as they plan.

16 hours ago, puchooay said:

My first rule whenever I looked at getting a mortgage.

 

Work out what the payments would be in the case of an interest rate increase of upto 5%.

Pre-loan mortgage illustrations include an explanation of the impact of interest increases on loan repayments.

 

It’s been a requirement for a long while already.

1 hour ago, Chomper Higgot said:

Pre-loan mortgage illustrations include an explanation of the impact of interest increases on loan repayments.

 

It’s been a requirement for a long while already.

It's a shame many people chose to ignore them.

 

I've never been offered one. Must be as I've been mortgage free for quite awhile now. It's easy to do with forward planning.

19 minutes ago, puchooay said:

It's a shame many people chose to ignore them.

 

I've never been offered one. Must be as I've been mortgage free for quite awhile now. It's easy to do with forward planning.

You’re amazing.

 

 

Well done you.

4 minutes ago, Chomper Higgot said:

You’re amazing.

 

 

Well done you.

Nothing amazing about it. It's all very simple mathematics with a little economics thrown in.

 

No need to praise me.