Taking a Closer Look at the Impact of Rising Interest Rates on UK Mortgages
Rising Interest Rates and the Impact on Variable Rate Mortgages As interest rates continue to climb, many homeowners in the UK are facing substantial challenges with their mortgages. For those on variable rate mortgages, the increase translates to an additional £25 to £30 per month for every £100,000 of outstanding mortgage. Moreover, individuals coming off affordable fixed-rate deals are bracing themselves for higher costs. Deliberate Measures by the Bank of England It's crucial to understand that this isn't a mere coincidence. The Bank of England deliberately raised interest rates as part of its strategy to reduce inflation. The move is aimed at tightening disposable incomes and withdrawing money from the economy. However, this measure affects only a relatively small proportion of the population, as only a third of the country's residents have mortgages. Indirect Impact on Renters Renters, on the other hand, face indirect impacts from the interest rate hike. They not ...