Homeowners were dealt more mortgage pain today after the Bank of England raised interest rates to their highest point in six years.
The Bank’s Monetary Policy Committee (MPC) hiked its base rate from 5.25 per cent to 5.5 per cent, the fourth quarter-point rise since August.
The move had been widely expected after inflation hit 3.1 per cent in March, forcing the Bank’s Governor to write an explanatory letter to the Chancellor for the first time.
The latest move will - if lenders pass on the full burden - add more than £16 a month to the bill of a family with a typical £100,000 home loan.
When added to the cost to borrowers of the previous three interest rate hikes in August, November and January, it means mortgage repayments for the average homeowner will have gone up by £63.79 a month to £738.99.