South Yorkshire mortgages set to rise following interest rate hike

Variable rate mortgates are set to increase in South Yorkshire
Variable rate mortgates are set to increase in South Yorkshire

Home owners with variable rate mortgages in South Yorkshire can expect to pay more following an interest rate increase today.

The Bank of England has increased interest rates to their highest level for nearly 10 years after the summer heatwave helped the economy bounce back from a snow-hit start to the year.

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Members of the nine-strong Monetary Policy Committee voted unanimously to raise the base rate from 0.5 per cent to 0.75 per cent.

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Minutes of the Bank's rate meeting signalled there would also be further rises to come as policymakers look to bring inflation back to target, although they continued to stress that these would be 'gradual' and 'limited'.

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Millions of borrowers on variable rate mortgages will be affected by the decision, with a quarter-point rise adding around £16 a month or £192 a year to the average mortgage.

But it will offer some relief to savers, who have seen their nest eggs decimated by above-target inflation and negligible returns.