The Newshound

Half a million homeowners face a £369-a-year mortgage hit as the Bank of England is set to raise rates

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's Monetary Policy Committee is expected to lift the base rate from 3.75% to 4% on Thursday — marking the first such move in over three years — after UK inflation rose to 3.5% in September, its highest in 11 months. Governor Andrew Bailey is under mounting pressure to act, with economists saying a hike is "all but nailed on" given rising energy costs and a resilient economy.

Around 510,000 tracker mortgage holders face the greatest exposure, with a full pass-through of the rise adding £30.72 to their monthly repayments.

Inflation is forecast to climb further this winter when Ofgem's energy price cap is expected to rise by around 25% in January 2027.

MoreEvening StandardBank 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 decisionBBC News - UKUK interest rates: Bank of England expected to raise them for first time in over three yearsDaily MailBank of England set to raise interest rates in fresh household squeeze
Read today's full feed at The Newshound →