The Bank of England raised its key interest rate by 50 points to 5% (instead of the expected 4.75%). This change will significantly affect mortgage payments, increasing their size. By the end of the year, economists predict a further increase in the rate to 6%. For comparison, two years ago the figure was 2.59%.

An especially strong increase in the key rate will affect those who took out a mortgage with a variable interest rate. It is likely that they will have to pay a lot of overpayments—we are talking about hundreds and thousands of pounds.

What do the experts say? They recommend everyone who has the opportunity to switch to a fixed interest rate without incurring penalties. The exception is for property owners who plan to sell their homes in the near future and don't want to pay early termination penalties.

What options are available for those who are caught off guard by increased payments? There are several: increasing the length of your mortgage, selling your property, refinancing to lower your payments, or increasing your rent (if your mortgage is covered by your rental).