‘My mortgage is going up £200’: How rising interest rates are hitting people’s pockets

The Bank of England has raised interest rates for the first time in more than three years, aiming to curb inflation linked to the Iran war. The increase may make mortgages, credit cards and personal loans more expensive, adding pressure for households already facing higher food, fuel and energy bills, while potentially improving returns for savers.

Peter Gill, who has a variable-rate mortgage, expects his monthly payments to rise by about £45 after the quarter-point increase. Dawn Fazackerley-King’s mortgage costs are set to rise by around £200 a month as she moves from a 1.4% fixed deal to the best two-year rate she could find, 5.69%. The article also describes how higher rates may affect people with credit card debt, and notes that experts expect further rises over the next 18 months if inflation pressures persist.