Martin Lewis warned anyone with a mortgage not to hike interest today.
Interest rates are likely to rise 0.75 percentage points from 1.75% to 2.5% if the Monetary Policy Committee (MPC) meet today.
It would be the highest interest rate Britain has had since the financial crisis. In December 2008, the key interest rate was reduced from 3% to 2%.
It would be her too highest single increase in interest rates since 1989.
savings expert martin lewis has warned homeowners with a mortgage they could end up paying an extra £40 a month because of the increase.
Mr Lewis appeared on Good Morning Britain on Wednesday when asked if there was any hope the situation could improve for those with a mortgage.
He said: “There is very, very little hope that interest rates will go down.
“The current UK interest rate is 1.75% and is likely to rise to around 2.25% or 2.5%. For every £100,000 outstanding, add about £40 a month.
“We’re hearing that interest rates could go even higher next year.”
The decision to raise interest rates is an attempt to keep inflation under control. It is the best tool the Bank of England has to steer inflation – currently at 9.9% – back towards its 2% target.
But the decisions will also have a big impact on people’s finances, not least those with mortgages who will have to start paying more on their home loans.
https://www.theargus.co.uk/news/22562018.martin-lewis-mortgage-warning-homeowners-interest-rates-set-rise/?ref=rss Martin Lewis mortgage warning to homeowners as interest rates set to rise