Interest rates up again

Millions of homeowners face higher mortgage bills today after interest rates were raised again.

The move by the Bank of England's monetary policy committee is the fourth increase in eight months.

The base rate was raised by 0.25% to 4.5%, meaning dearer mortgage loans for variable rate borrowers.

If lenders pass on the full hike in rates, monthly repayments on a £65,000 loan will increase to £438.88 from £428.78, based on a new rate of 6.5%.

But first-time buyers who are more likely to have a loan of around £100,000 will see their repayments rise by more than £15 a month to £675.20, while those who are heavily mortgaged with a £200,000 loan will need to find an extra £31.

Homeowners have now seen cumulative rises of £40 a month on a £65,000 mortgage since November last year.

And with analysts predicting rates could now end the year at 5%, they will have seen their repayments rise by £60 a month since rates first began to increase.