Mortgage Pain Persists Despite BoE's Interest Rate Decision

The Bank of England has kept interest rates at 3.75% for now, but borrowers are still feeling the pinch.

Mortgage lenders have been hiking their rates in response to inflation forecasts and market volatility, with some even increasing fixed mortgage rates twice this month.

The average two-year fixed mortgage rate has risen from 5.63% at the start of August to 5.73%, while the five-year fixed rate jumped from 5.66% to 5.78% over the same period.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, warned that borrowers who can't lock in a new deal are facing 'huge shock' as their rates move off sub-2% fixes available earlier this year.