The Bank of England is due to announce whether it will hike interest rates and how much by this lunchtime. A predicted jump of 0.75 percent would take the borrowing rate from 1.75 percent to 2.5 percent, and would be the largest rise in three decades. The expected hike is already influencing borrowing rates at major banks, with Santander, HSBC, and NatWest already increasing interest on fixed mortgages before the announcement has landed. Lewis Shaw, of broker Shaw Financial Services, said: “Borrowers should buckle up.
“The writing is on the wall for a significant Bank Rate rise and lenders have preemptively hiked rates, because they don’t want to get caught short scrambling to re-price their deals.”
Jiten Varsani, of London Money Financial Services, said: “Sudden and multiple large rate increases over a short period mean even those who have planned ahead and built emergency funds are going to struggle.
“One client has seen a £310 increase in monthly mortgage payments, along with a £250 increase across other expenses such as utilities, groceries and fuel.
“It means an additional £6,720 each year that they longer have to spend elsewhere or save.”
FOLLOW BELOW FOR UPDATES…