Cost of living to go up!

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Chancellor Rishi Sunak is in talks with Bank of England to head off the “cost of living cataclysm” as interest rates lift to 0.5%, from 0.1 per cent in December.

Higher interest rates make borrowing more expensive, higher mortgage costs, higher gas bills and harder choices during grocery shopping.

Some lenders raised rates for those applying for a new home loan, over 74 per cent of mortgage borrowers in the UK are on fixed-rate deals, as and when their current fixed term ends.  According to banking trade body UK Finance, 1.5 million fixed-rate deals will expire this year and another 1.5million will do so in 2023. 850, 000 homeowners are on tracker deals, and the other 1.1 million are on standard variable rates (SVRs), who will immediately feel the impact of bank interest rate rises, as a typical tracker mortgage customer’s monthly repayment is likely to go up by 25.76, and the typical SVR customer is likely to pay £15.96 more.

For savers money in the bank has effectively been falling in value for some time.