- BoE is all set to go for another rate hike of 50bps in August, lifting the rate to 1.75%.
- Millions of homeowners are facing hikes in mortgage costs amid the rising inflationary pressures.
- Homebuyers with variable mortgage rates will struggle immediately due to the rate hikes.
The UK is all set to witness the most significant hike in interest rates since 1995 as the Bank of England (BoE) is expected to go for another rate hike of 50 basis points (bps) in August. As the inflation in the country reached a new 40-year high level of 9.4% in June, the BoE was pushed to lift the interest rates to 1.25%. With the upcoming hike, the rate will soon hit a record level of 1.75%.
With the inflation and interest rates going up, the concerns among home buyers have also been increasing as it is becoming more and more difficult for them to buy properties. Millions of home owners face hikes in mortgage costs amid the rising inflationary pressures. The escalating cost of living squeeze is hurting households' budgets and making it difficult for first-time buyers to climb the property ladder.