The Bank of England has raised its base rate by 0.5% to 5% as it fights to bring down inflation, which yesterday was revealed to be sticking at 8.7%, above the bank's target of 2%
The move is likely – but not guaranteed – to push up interest rates for new landlord mortgages for buy to let properties, and make it more painful for those who are about to come off low fixed rates agreed two or five years ago when interest rates were much lower.
This is the 13th consecutive time that this rate has increased and the latest data has revealed that the cost of living is increasing more than expecting. Inflation stood at 8.7% in May, the same level recorded in April, despite predictions it would fall further.
The latest rate hike maes the cost of payning back mortgages, other loans and credit cards more expensive but should mean people get a better return on their savings.
Amid mortgage rates rising again, many sellers are now thinking of selling to avoid unaffordable home loan costs.