Base rate raised to five-year high

The Bank of England's Monetary Policy Committee has raised the base interest rate to 5% - its highest level in five years.

In a move widely anticipated by the market, the MPC committee increased the base rate by 25 basis points from 4.75% to to 5%, in a bid to curb inflation.

According to data supplied through the Moneyfacts base rate ready reckoner, this means the average homeowner with a £150,000 25-year mortgage will see their repayment mortgage increase by £12.71 a month to £876.89 while an interest-only mortgage will increase £31.25 to £625.

Increase to monthly mortgage payments following BoE’s base rate rise to 5%