“We were expecting a base rate rise of 0.75%, the biggest rise in 33 years, taking it to 3%, a rate last seen back in November 2008.
“This year we have said goodbye to the historically low interest rates of the past 13 years, but we should remember that even at 3% the rate is still relatively low. The last time base rate was 3%, prior to 2008, was almost 70 years ago in May 1954.
“Nevertheless, the rise in mortgage rates will be difficult for many people, especially a generation who have only known low rates.
“Data released earlier this week is starting to show a slowdown in the housing market. The Bank of England’s mortgage approvals and gross lending figures were both down in September while Nationwide’s house price index saw the first monthly fall of 0.9% since July 2021.”
Simon Webb, managing director of capital markets and finance at LiveMore