The Bank of England has increased the base rate by 25 basis points to 1.25%
The increase marks the fifth base rate rise since December 2021 after a decade of historic lows.
The Monetary Policy Committee minutes say that UK GDP was weaker than expected in April, partly reflecting a further decline in Test and Trace activity.
The Bank of England now expect GDP to fall by 0.3% in the second quarter, which is weaker than anticipated at the time of the May report.
The committee expects inflation to be over 9% during the next few months and to rise to slightly above 11% in October. The increase in October reflects higher projected household energy prices following a prospective additional large increase in the Ofgem price cap.
It is thought that although this increase will translate into higher mortgage rates, the housing market remains resilient and feedback from our brokers across the country tells us that activity for purchases and re-mortgages remains high.
If you are uncertain about your mortgage, or would like to see if you can protect yourself against further rises, talk to Asset harbour on 01276 986333.