Experts are forecasting “more misery” for householders because the Bank of England is ready to lift interest rates as soon as once more.

In the previous 12 months, mortgage repayments have risen considerably as a result of a wave of fixed base fee hikes from the central financial institution.

These have been carried out by the Bank to mitigate the harm brought on by inflation on the financial system.

While the Consumer Price Index (CPI) fee stays excessive within the UK, final month it eased to 7.9 p.c.

This has not stopped analysts from betting on additional intervention from the monetary establishment with some estimating a rise from the present base fee stage of 5 p.c to five.5 p.c.

Nigel Green, the CEO of De Vere Group, is one among many who's predicting this final result subsequent month.

He defined: “Despite the data showing that the battle against inflation in the UK is being won, we expect the Bank of England will confirm it’ll continue with its aggressive interest rate hiking agenda at the monetary policy meeting on August 1.

“Although the consumer price index fell to 7.9% last month, amid lower petrol prices and a slowdown in the pace of growth for food, beverages and other basics, the central bank officials will likely argue that there is still work to be done.

“We believe the Bank will insist that although inflation is certainly coming down, it is doing so very, very gradually. It remains sticky – still the highest in the G7 – and a long way from the two percent target.

“They will say prices are still far too high and rising at a quicker pace than they have done in the past. In addition, they are likely to cite strong wage growth in the three months to May.”

Outside of the Bank of England, different central banks together with the US Federal Reserve have opted to hike rates of interest.

When charges are elevated, the price of borrowing for a rustic additionally goes up which results in dearer mortgages.

Homeowners on a variable fee mortgage usually tend to face greater compensation prices than these on a hard and fast fee.

Those who're in debt additionally see their month-to-month repayments shoot upm because of this determination.

One of the numerous knock-on results of that is that buyers have much less disposable earnings to spend.

As a end result, the broader financial system outdoors of housing is impacted within the wake of fixed rate of interest rises.

Mr Green added: “We believe that although the battle to tame inflation seems to be being won, with the lowest reading in 16 months, the Bank of England is highly unlikely to be dissuaded from its course of rate hiking action for the time being.”