The Bank’s monetary policy committee voted to raise rates for the third time in a row, a decision that will impact householders with mortgages that are not on fixed rates.
These mortgage-holders will see repayments rise again as lenders follow suit, adding to the increases in fuel prices and household energy costs. All these factors will impact on spending on travel and holidays.
The Bank’s decision was made due to worries about spiralling inflation, which was predicted to reach 7% even before the economic uncertainty created by Russia’s invasion of Ukraine.
About a third of households have mortgages, but only those not on fixed rates will pay more. The interest rate rise is good news for savers, who should see a small increase in their annual earnings.
