How the interest rates rise will affect you and your mortgage

manchestereveningnews.co.uk:

The Bank of England has announced a 0.25 per cent rise in interest rates in the UK. Interest rates now stand at 0.5 per cent - which is the second increase in seven weeks after the rate went up from 0.1 per cent to 0.25 per cent in December 2021.

This came on the same day that Ofgen announced that the energy price cap will rise by 54 per cent, affecting around 22 million homeowners across England, Wales and Scotland.

As the cost of living crisis escalates, millions of households can now expect to pay more on their monthly mortgage repayments. READ MORE: Simple ways every household can cut their energy bills by more than £700 per year The Mortgage Advice Bureau has now explained how the change in interest rate will affect you and your mortgage - and what homeowners should consider doing to help manage their repayments. Consider locking in a fixed rate mortgage Depending on the type of mortgage you have, you may or may not be affected by the interest rate rise. "Homeowners whose mortgages are directly linked to the bank rate may see an increase in monthly repayments," explained Brian Murphy, head of lending at Mortgage Advice Bureau. "Those who are on lender revert rates or Standard Variable Rates (SVRs) will have to wait and see if their lender will pass on the rate increase in full or only in part. "Those who have a tracker rate mortgage are more likely to see the rate passed on in full, and possibly as soon as their next mortgage payment. "A fixed rate mortgage could provide a temporary safe haven against upcoming interest rate rises as their fixed interest rates are guaranteed for a set time period. "If you’re remortgaging, make sure to speak to your lender about your mortgage terms as there may be exit fees or early