Homeowners now face the biggest single shock on their mortgage bills since the 1980s.
Homeowners are set to face the biggest single shock on their mortgage bills since the 1980s as the Bank of England hiked interest rates for the eighth time in a row.
The Bank also warned that the UK could be on course for the longest recession since reliable records began in the 1920s. However the Bank cautioned that this forecast is based on interest rates reaching as high as 5.2%, which the Bank said it does not necessarily expect to happen. Meanwhile unemployment is expected to peak at around 6.5%, from 3.5% today, slightly lower than in 2008.It had previously forecast inflation to peak at 13% in the third quarter of this year, but with the Government’s support on household energy bills the forecast was slashed to 10.9%.
The latest decision pushes interest rates to their highest since early December 2008, and will heap extra pressures on households.
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