Which? responds to the news that the Bank of England has raised interest rates to 4.5 per cent

Sam Richardson, Which? Money Deputy Editor, said:

"The latest Bank of England base rate rise could help to curb inflation, which would bring much-needed relief to those struggling with soaring prices, but it will also push up housing costs for millions of people. Which? research recently found that an estimated 700,000 households missed housing payments in the last month alone and this hike risks pushing even more people into housing arrears. 

“Those on a tracker mortgage will see an immediate impact on monthly repayments, and those on a variable rate could also see their costs rise. Mortgage owners on a fixed-term deal will not be affected for the duration of their deal, however they will likely be stung with much higher rates when the time comes to renew. 

“Homeowners struggling with payments should speak to their lenders, which are required to offer support, such as temporarily reducing payments or extending the mortgage term. Discussing your options with your lender will not affect your credit rating. 

“Higher rates will also have an impact on renters, as buy-to-let landlords will likely pass on increased costs to their tenants. If you are unsure about how you will be able to pay your rent, contact your landlord or letting agent to see if a different payment plan is available.”

-ENDS-

Notes to Editors 

• Use Which? Money’s mortgage calculator to see how your current payments could change if you had to pay a higher rate
• Visit Which?’s free guide on what to do if you’re struggling with your rent.