The Newshound

Half a million homeowners could face a £369 mortgage hit if the Bank of England hikes rates to 4 per cent

Governor Andrew Bailey, who faces warnings from Barclays' chief UK economist that holding rates risks unsettling expectations and undermining confidence in the Bank.
Governor Andrew Bailey, who faces warnings from Barclays' chief UK economist that holding rates risks unsettling expectations and undermining confidence in the Bank.
A data graphic showing mortgage rates from Nationwide, Barclays and Halifax, as Ofgem's price cap is projected to rise by roughly 25 per cent in January 2027.
A data graphic showing mortgage rates from Nationwide, Barclays and Halifax, as Ofgem's price cap is projected to rise by roughly 25 per cent in January 2027.

The Bank of England is all but certain to raise its base rate from 3.75 per cent to 4 per cent at Thursday's Monetary Policy Committee meeting — the first hike since August 2023. The trigger is CPI inflation climbing to 3.5 per cent in September, its highest in 11 months, with energy costs driven by Middle East tensions pushing prices further upward. Ofgem's price cap is projected to climb around 25 per cent in January, threatening a second wave of household pain.

The 510,000 tracker-mortgage holders face an extra £30.72 a month; a further 470,000 on standard variable rates may feel the impact too if lenders choose to pass the rise on.

Barclays chief UK economist Jack Meaning warned that holding rates 'risks unsettling expectations and undermining confidence in the Bank.'

Average five-year fixed mortgage rates have already hit 6 per cent for the first time in three years, squeezing borrowers before the MPC has even voted.

MoreLBCBank of England set to hike interest rates to 4% to tackle rising inflationGB NewsHalf a million homeowners could see mortgage costs rise by £369 after Bank of England decisionThe TimesMortgagesDaily MailBank of England set to raise interest rates in fresh household squeezeThe TelegraphMortgage rates hit three-year high ahead of crunch Bank of England voteThe TelegraphHow the Bank of England is strangling the economyCity A.M.City AM Shadow MPC urges Bank of England to hike interest rates
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