The prospect of a rise in interest rates has been upgraded to “imminent” after inflation reached 3.1% in March, more than 1% above the government’s target.
Industry experts say homeowners should brace themselves for a minimum 0.25% rise in the Bank of England base rate next month, which is currently pegged at 5.25%. This would represent the fourth rise of its kind since August last year.
Andrew Montlake, partner at mortgage broker Cobalt Capital, said: “A quarter point rise is almost a dead cert for May, but it could be as high as 0.5%.
Homeowners braced for mortgage rises