Mortgage holders today faced more pain after the Bank of England unexpectedly pushed up interest rates to 5 per cent, the highest level in almost 15 years.
The move could deepen the crisis as borrowing costs are hiked up for the 13th time in a row – adding an estimated £47.43 to the average monthly tracker payment.
Those coming off fixed rate mortgages face much bigger jumps in their bills all in one go.
The 0.5 percentage point rise was the sharpest increase since February, surprising economists who had been expecting a smaller hike of 0.25 percentage points.
Ahead of the Bank’s decision, the average two-year fixed mortgage rate was at 6.19 per cent today – up from 5.34 per cent just one month ago. The five-year rate was 5.82 per cent today, up from 5.01 per cent a month ago, according to Moneyfacts.
It comes after the inflation rate was revealed yesterday to have stuck at 8.7 per cent in May – the same as in April, despite experts forecasting a fall to 8.4 per cent.
Calls continue to grow for the Government to do more to help mortgage borrowers who are set for a big jump in their monthly repayments. But Prime Minister Rishi Sunak has so far dismissed suggestions that ministers could intervene.
Here, MailOnline and This is Money speak to borrowers about their financial situations:
A teacher revealed she has already seen an increase of £240 a month on her tracker mortgage before today’s Bank of England rate decision.
