What does the Bank of England rate rise mean for you?

Average tracker mortgage could rise by £15 a month… but savers could bag a few extra quid.

  • Homeowners should prepare for more rises if economists rack the rates higher
  • They added Britons are likely to also be hit by rising energy costs and food prices
  • Savers are also disappointed by the move but told there were ways to make cash

Head of Corporate Partnerships at Sirius Property Finance Kimberley Gates added: ‘Any increase in interest rates is always going to cause concern from homeowners who will be understandably worried about the implications it might have on their monthly mortgage payments.

‘However, it’s important to remember that even with today’s increase, rates remain incredibly low and so there’s certainly no reason to run for the hills.

‘Stress testing will have ensured that any monthly cost increase is easily stomached by the nation’s homebuyers and many more will have also locked in fixed-rate terms which they will continue to benefit from.

‘While there will no doubt be some reaction by lenders in line with today’s increase, it’s unlikely to dampen our appetite for homeownership and buyers will continue to benefit from some of the lowest rates seen in recent times.’

Santander was the first bank to say it would pass on the full increase to customers just moments after the announcement. It was followed by NatWest and Nationwide.

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