Interest Rate Rise Imminent: Barclays and UBS Predict November Hike

The Bank of England recently decided to keep interest rates at 3.75 percent until November, when they will reassess and potentially increase them. Barclays and UBS are predicting a rise in interest rates as early as November, which could impact people's mortgages.

If you're on a fixed-rate mortgage, nothing will change for you until your deal expires. Those on variable rates or tracker mortgages should keep an eye on the situation because their payments may increase if the Bank Rate rises.

A £200,000 mortgage with a 3.75 percent interest rate would cost £1,029 per month. If the interest rate increases by just a quarter of a percent, that monthly payment would rise to £1,055, costing over £300 more per year.