Mortgage rates rise following inflation figures

Various lenders have increased the costs of their new deals, with the most dramatic increase being Nationwide, who’s deals have gone up by up to 0.45%.

These increases also come amid expectations that the Bank of England’s MPC (monetary policy committee) will once again increase interest rates.

Official inflation figures showed that, in April, inflation slowed by less than expected, resting at 8.7% (for core inflation).

The markets, naturally, reacted strongly to this, however it should be noted that the reaction as nowhere near what we saw following the mini-budget last year.

Commenting on the inflation figures, Charles Cotton, senior policy adviser for performance and reward at the CIPD, said: “While it’s a welcome relief that inflation is falling and is predicted to drop further, most goods and services are still going to cost workers more than they did last year.

“It’s also not only employees who face higher prices. So do their employers, which restricts the ability of some organisations to offer financial support. Where this is the case, workplaces should focus their support on those most at risk of in-work poverty.”