The Bank of England will soon decide whether interest rates will be raised again.
The base rate is what the Bank of England charges other banks and lenders - this in turn then influences the rates you are charged as a customer when you borrow money. If interest rates are higher, you'll pay more to borrow on products like variable-rate mortgages.
The central bank increased the base rate on May 11 to 4.5%. The next announcement will be on June 22. Some experts have suggested that mortgage rates could tick upwards amid expectations that the Bank of England base rate will need to rise higher than its current level of 4.5%
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Martin Lewis, speaking on his BBC podcast, said the Bank of England base rate was initially expected to peak at 4.5%, the level they are currently at. But Mr Lewis said the bank now expects that to peak at 5% or 5.5% due to general inflation not falling by as much as expected.
One website has looked at what a potential further 0.25 percentage point hike in the Bank of England base rate could mean for homeowners across England. Ahead of June 22, comparison service TotallyMoney looked at what a base rate hike could mean for mortgage payers - if the Bank of England decided to raise the base rate from 4.50% to 4.75%.
Various assumptions about house prices and mortgages were made for the calculations and so the actual impact for individual borrowers will vary, depending on their own circumstances, including what type of mortgage they have.
The research used average house prices from just before the series of interest rate hikes started in November 2021, as well as assuming a borrower had a 75% loan-to-value variable rate mortgage and a 25-year mortgage term.
It was estimated the average additional monthly costs of a potential 0.25 percentage base rate hike would be £23 in the North West.
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