Interest rates and its effects on property sector

The Bank of England has raised the interest rate for only the second time in a decade. 

The rate has risen by a quarter of a percentage point, from 0.5% to 0.75% – the highest level since March 2009.

While the decision means that the 3.5 million people with variable or tracker mortgages will pay more, the rise will be welcomed by savers.

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Bank of England, Interest Rates, Higher Finance Cost, Property, Mortgages, Variable Interest Rates

Five interest rate facts on property mortgage

  • More than 3.5 million residential mortgages are on a variable or tracker rate
  • The average standard variable rate mortgage is 4.72%
  • On a £150,000 variable mortgage, a rise to 0.75% is likely to increase the annual cost by £224
  • A Bank rate rise does not guarantee the equivalent increase in interest paid to savers. Half did not move after the last rate rise
  • No easy access savings account at a major High Street bank pays interest of more than 0.5

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