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BBCNEWS BBC News June 4, 2024 13:05:00

It still means that the real value of those savings is falling. after today s rising interest rates, in the city of london, the bank of england is now expected to continue to raise them to nearly 5% by next august, more than double their current level. let s speak to our correspondent andy verity who s with me now. in terms of interest rates, potentially 5%, that will affect anyone changing a mortgage. 2.25% is the official anyone changing a mortgage. 2.2596 is the official rate anyone changing a mortgage. 2.2596 is the official rate now anyone changing a mortgage. 2.2596 is the official rate now but anyone changing a mortgage. 2.2596 is the official rate now but you anyone changing a mortgage. 2.2596 is the official rate now but you have - the official rate now but you have already seen the new deals on offer were much higher than a year ago, so you only have a minority of households, less than 10% on variable rate mortgages, and they will see their rates go up by about £30 on ....

Bank Of England , Interest Rates , Andrew Verity , City Of London , 2 25 , 2 2596 , Rate Mortgages , The End ,

BBCNEWS BBC News June 4, 2024 14:05:00

Than double their current level. a short time ago i spoke to andy and started by asking what the effect the interest rate rise would have on people with mortgages. already you see the new deals on offer were much higher than a year ago, so you only have a minority of households, less than 10% on variable rate mortgages, and they will see their rates go up by about £30 on a tracker. but most houses have fixed rate mortgages if they have them at all. 0nly only about one third of households have mortgages. for those on fixed it is still a worry because when you come to the end of your fixed rate term, the new rate is going to be a lot higher than the old one. ....

Interest Rate Rise , Rate Mortgages , The End ,

BBCNEWS BBC News June 4, 2024 13:08:00

Sarah pennells is a consumer finance specialist at royal london. she can tell us more. in terms of the people who have got mortgages, we heard from andy about what this will mean. those on trackers will feel it immediately. people on variable rate mortgages such as trackers or discounted rates or indeed the standard variable rate will see they are mortgage payments rise. with tracker rates it tends to be almost instant, with standard variable or discount rates there can be a bit of a lag but it tends to be weeks rather than months. for someone with a £200,000 mortgage on a standard 25 year term repayment basis, 0.5% rise will cost them roughly an extra £50 per month. that is bad enough for those on variable rate mortgages but as andrew was ....

Sarah Pennells , Consumer Finance Specialist , Royal London , Mortgage Payments , On Trackers , Andrew Verity , 0 5 ,