Prime Minister says he's '100% on it' as Northern Ireland homeowners face mortgage rate hike

Homeowners in Northern Ireland who are on a variable rate or coming to the end of their current deal are holding their breaths after another interest rate hike.

The Bank of England raised its base rate to a 'shock' 5% on Thursday in an attempt to lower inflation, which is stuck at 8.7%.

It means mortgage lenders will put up their interest rates yet again.

Mother of five, Amanda Graham, owns multiple properties and told UTV she is concerned as some are coming to the end of their mortgage deal.

"What are we going to go into? Are we going to see a property fall? Are we going to see also those rates rising and being able to afford things," said Amanda.

"The quote that we've had is much more expensive than what we had budgeted for.

"There is a pressure. It's just the unknown of what's going to happen to you. Do you put yourself in for a two year date. If it's a good day, do you go for the five year deal and what happens if interest rates do drop?

"There is a lot of hearsay that they're going to continue to rise in line with inflation, and nothing seems to be clear at this moment in time."

Rachael Mullan is a mortgage broker and owns Northern Mortgages on the Falls Road in Belfast.

She explains who is affected and what to do if that's you.

"Well, it depends what your rate is at the minute. If you're on a fixed rate, you don't need to worry until you come to the end of the fixed rate.

"The people who are at risk of this new increase are the people that are on the trackers and the variables. They will feel that sort of straightaway in their next payment," said Rachael.

"So if you're on a fix, don't panic until you are within six months, obviously. And that is when you need to be starting to speak to your broker."

The Prime Minister has previously pledged to half inflation by the end of 2023.

On Thursday he addressed the Bank of England's decision to further bump interest rates.

Rishi Sunak said: "I'm here to tell you that I am totally 100% on it and it is going to be okay and we are going to get through this."

For those who could now be locked into a new and higher rate, his words will be of little comfort.

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