Banks pull cheapest mortgage deals off market as interest rates set to rise

Banks are pulling their cheapest mortgage deals off the market as interest rates rise, sending the cost of home loans sharply upwards.

The City now expects the Bank of England to raise rates from historic lows of 0.1% either next month or the month after, with base rates expected to hit 1% by August.

Analysis for the Evening Standard shows that would increase the annual cost of the nation’s mortgages by a total of £14 billion, money sucked out of the economy in the midst of a likely slowdown caused by Covid and supply chain crises.