The Bank of England has raised interest rates over the last year in a bid to get a hold on the inflation that has been driving the cost of living crisis – but that spells bad news for people with mortgages.
BoE governor Andrew Bailey confirmed interest rates would hit 4.5% in May. That rise was the 12th successive increase in borrowing costs, taking interest rates up to levels not seen since 2008 when the world was hit by a global financial crisis.
Bailey said the move was the central bank’s response to inflation which has remained above 10% in recent months, sending the cost of essentials like food rocketing and making it harder for people on lower incomes to make ends meet.