paid out to investors in two-year UK government bonds has also risen to five per cent, the highest level since the 2008 financial crash.
Experts now predict the Bank rate could jump as high as 5.75 per cent next year, which could translate to mortgage rates of 8.77 per cent. Homeowners who have to remortgage this year will have to find an extra £250 a month for a £100,000 loan at a time when many are struggling to afford rocketingExperts warn the shock to incomes will be worse than in the 1980s, when mortgage rates were at 15 per cent, because the jump has been bigger and much more sudden.
The news comes as figures from Rightmove show house prices have dropped for the first time since 2017.
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