As predicated the Bank of England’s Monetary Policy Committee voted to raise the Official bank rate to 5.75% which is an increase of 0.25%. This is the fifth rise in the cost of borrowing in the last eleven months, with the previous rate rise on the 10th May when it was increased to 5.5%.
This rate raise was widely predicted by many economists and while respected by many, business leaders were less impressed with this rate raise.
Many traders are also predicting that by the end of the year interest rates will hit 6%. So what does this mean for homeowners? If you have a £150,000 mortgage the increase would be around £23 extra per month.
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