Millions of homeowners face a ‘mortgage time bomb’ as fixed-rate loans expire, according to experts, after the Bank of England imposed the fastest interest rate rise since 1997, with experts predicting it could reach 4% or higher by the end of the year.<\/p>\n\n\n\n
Governor Andrew Bailey also predicted that the UK will enter a year-long recession by the end of 2022, the longest since the 2008 financial crisis and as deep as the one in the 1990s.<\/p>\n\n\n\n
His doomsday prediction also stated that inflation will now peak at more than 13% – 11 percent higher than his own target – fueled by the soaring price of gas and fuel this winter.<\/p>\n\n\n\n
In an effort to rein in spiralling inflation, the Bank raised interest rates by 0.5 percentage point yesterday, the largest increase in 27 years.<\/p>\n\n\n\n
Its base rate, which banks use to determine mortgage rates, has risen to a 13-year high of 1.75 percent, from 1.25 percent. As a result, approximately 2 million homeowners with tracker or variable rate loans will face eye-watering mortgage bill increases.<\/p>\n\n\n\n
Governor Andrew Bailey has admitted that rising inflation ‘concerns me the most,’ amid political criticism of the bank’s slow response to the current economic turmoil.<\/p>\n\n\n\n
‘We are in the centre of things because of what is going on in the world at large and the impact that is having on inflation,’ he said.<\/p>\n\n\n\n
‘I think it’s important that there is a full debate during this process to choose the next prime minister of this country.<\/p>\n\n","protected":false},"excerpt":{"rendered":"
Millions of homeowners face a ‘mortgage time bomb’ as fixed-rate loans expire, according to experts, after the Bank of England imposed the fastest interest rate rise since 1997, with experts … <\/p>\n