⬆️ Why do interest rates go up? ⬇️ It's all about inflation
All eyes were trained on the Bank of England and its Monetary Policy Committee today as it considered whether it should put interest rates up by aUltimately, it decided to increase rates by 0.25 percentage points – the eleventh consecutive increase – bringing it to 4.25 per cent.
Consider this: with the average price of a property being £289,819, according to the ONS, someone putting down a 10 per cent deposit of £28,982, would expect to pay £1,574 a month on a repayment mortgage of £260,837, with anIf a 0.25 per cent interest rate rise was applied to that mortgage, taking the rate to 5.57 per cent, the repayments would jump to £1612 – a rise of £38 a month or £456 a year. For a 0.5 per cent rise that interest rate goes up to 5.
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