What the interest rate rise means for your mortgage

As mortgage interest rates rise, extending home loans is starting to become eye-wateringly expensive. Ruth Jackson-Kirby explains what you can do about it.

Man with his head in his hands
Recent interest-rate rises spell disaster for those remortgaging next year
(Image credit: © Getty Images/iStockphoto)

Homeowners will have breathed a sigh of relief last week when the government finally announced a policy to prevent energy bills skyrocketing, but the cost-of-living crisis is far from over. The next thing to worry about is your mortgage.

On 22 Thursday the bank of England raised interest rates by 0.5 percentage points, which takes the base rate to 2.25% — the highest level since December 28.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.