UK news Bank of England’s decision to hike interest rates ‘adds at least £600 a year to 85,000 Northern Ireland mortgages’ last news

PremierLeague-News.Com - Homeowners face a “hard winter” after the Bank of England’s decision to hike interest rates to 1.75% added hundreds of pounds a year to their mortgages.

UK news Bank of England’s decision to hike interest rates ‘adds at least £600 a year to 85,000 Northern Ireland mortgages’ last news

PremierLeague-News.Com - Homeowners face a “hard winter” after the Bank of England’s decision to hike interest rates to 1.75% added hundreds of pounds a year to their mortgages.

UK news Bank of England’s decision to hike interest rates ‘adds at least £600 a year to 85,000 Northern Ireland mortgages’ last news
05 August 2022 - 05:15

PremierLeague-News.Com - Breaking Sport Transfer News ! "Homeowners face a “hard winter” after the Bank of England’s decision to hike interest rates to 1.75% added hundreds of pounds a year to their mortgages. One expert warned that the increase, up from 1.25%, could make owning a home or trading up unaffordable.Consumers with other types of borrowing, such as car loans and credit cards, will also have to pay more to cover their debt.The rise is another blow for households already struggling with climbing energy costs and food prices.Research published earlier this week by York University said Northern Ireland would soon face the highest rate of fuel poverty in the UK, with 71.7% of people in difficulties.According to the trade association UK Finance, homeowners whose mortgages track the Bank of England base rate will see around £50 per month, or £600 a year, added to payments. But Dr Michael McCord, a reader in real estate at Ulster University, said people looking for a new mortgage deal on a fixed rate after an old deal had run out could have to find another £150 a month, depending on the size of their home loan.  It is estimated that around 85,000 of Northern Ireland’s 236,000 mortgage holders hold variable or tracker mortgages that are affected by Bank of England interest rate decisions. The remainder, around 150,000 people, are on fixed-rate deals.Dr McCord said: “If you are on a fixed term coming to an end which you secured at, say, 1.99%, the jump to current rates is by circa 1% at least. “So, consumers whose terms are currently ending are faced with a very difficult position.  “Some are seeing their rates increase from 1.99% to between 3.

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.74%, depending on the term, so this is effectively adding on 1.5% in repayments per month“The increases, depending on the value, will vary, but it will for most households make a sizeable dent in their monthly repayments and finances.“An example of this is a household currently paying circa £850 per month whose mortgage term is up and is currently refinancing. [It] will see an increase to around £1,000 per month.“This has very obvious and serious affordability questions and issues.“There could be instances where those having to refinance may not pass the affordability stress tests and not be offered a new mortgage.”People who are on standard variable rate mortgages will also have to pay more.The Bank of England’s Monetary Policy Committee lifted the interest rate to contain inflation, which rose to 9.4% in June — the highest level in 40 years.  CBI Northern Ireland director Angela McGowan said people faced a “hard winter”. She added: “With further energy price rises potentially on the horizon, support for vulnerable households and businesses should be kept under review.“Monetary policy is typically the first line of defence against inflation when it is demand-led.“However, the supply-side element of this inflation crisis has made the Bank of England’s job much more difficult.”Ms McGowan called on the next prime minister to take action to boost productivity, and said an Executive was needed to guide society through the crisis.She added: “At the regional level in Northern Ireland, an agile and supportive response to the inflation crisis really requires an Executive to be in place.”" , "isAccessibleForFree": "False", "hasPart": { "@type": "WebPageElement", "isAccessibleForFree": "False","cssSelector": "#flip-pay"} }

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