More Homeowner Woe for Borrowers

The cost of borrowing is now at a six year high as The Bank of England increased interest rates a quarter-point, the fifth increase in less than a year yesterday.

 

Wendy Hooley, Head of Direct Conveyancing at Flint Bishop comments: “The decision to increase interest rates to 5.75 per cent is a blow for many households in the UK.” She continues: “What is also extremely worrying is that many economists are warning that further increases in rates are likely before the end of the year, a move which could see many household becoming very hard-pressed financially.”

The Bank’s move comes as around 750,000 borrowers will reach the end of two-year fixed-rate loan deals, taken out when base rates were just 4.5 per cent.