Millions of households are facing a hefty increase to their mortgage costs today after the Bank of England raised interest rates to the highest level in 14 years, in an effort to tame near double-digit inflation.  

In the seventh consecutive rise since December 2021, interest rates have jumped by another 0.5% to their current level of 2.25%. This means typical mortgage repayments, for those not on fixed deals, have increased by £250 a month.

Today’s decision did however defy market expectations: many economists had predicted – and hoped – that the Bank would make history today by unleashing its first 0.75 percentage point increase since it gained independence, to tackle inflation quicker.