Interest rates up to 5.75%

(06-07-07) - The Monetary Policy Committee has decided to raise interest rates for the fifth time since last August, brining them to a six year high.

This latest increase will add between £15 and £20 a month to the average £100,000 repayment mortgage, but the Bank of England hopes that the high interest rates will deter people from borrowing beyond their means.

However, Chris Eagle, CreditChoices.co.uk commercial manager warned: “These increases are unlikely to put people in need off borrowing money, as this has rarely been the case in the past.

“Rate increases over the past year are only now starting to kick in, and as people come off their fixed rate mortgages they will really start to feel the pinch.

“People feeling like they might struggle with the new rates should look into switching their mortgage as this is a great way of saving and even a quarter point difference can shave thousands off the lifetime of a mortgage,” he concluded.

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