Bank Rate went up, but mortgage rates are predicted to go down

ENGLAND: Mortgage rates are anticipated to continue to decline over the next few weeks, despite the most recent hike in the Bank Rate. (Reported by news source)

Interest rates have risen by 0.5% to 3.5%, the highest level since October 2008, thanks to the Bank of England. In an effort to rein in spiraling inflation, the Monetary Policy Committee (MPC) raised the Bank Rate for the ninth meeting in a row.

For homeowners with a £200,000 variable rate mortgage, the increase raises their monthly payments by £60. A tracker mortgage is held by about 850,000 people, while 1.1 million are on their lender's standard variable rate. Both of these rates fluctuate in step with the Bank Rate.

However, there was some good news for homeowners because the most recent hike was lower than the 0.75% increase decided upon at the meeting in November.

The Bank Rate will only rise to between 4% and 4.25%, down from earlier predictions of 5%, with inflation anticipated to begin swiftly falling in the middle of next year, according to economists.