On Thursday, the Bank of England is anticipated to increase interest rates from 4.5% to 4.75% as part of its efforts to curb inflation.
UK’s inflation to drop in May and was stuck at 8.7%.
However, there are speculations among economists that the Bank may opt for a more significant increase of 0.5%.
Should the rates rise, it is expected that mortgage rates will also go up for individuals seeking to re-mortgage or those with variable-rate mortgages. Approximately 800,000 individuals are projected to re-mortgage next year.
As of today, a typical two-year fixed mortgage deal carries an interest rate of 6.15%. Meanwhile, the standard variable rate, effective from 1 June 2023, stands at 7.52%, as reported by financial data firm Moneyfacts.
In recent weeks, mortgage lenders have been withdrawing mortgage deals and swiftly raising rates.
Additionally, Chancellor Jeremy Hunt announced yesterday that there will not be a major scheme implemented to provide assistance to homeowners facing financial difficulties.