The Bank of England’s Monetary Policy Committee (MPC) has voted to increase the Bank Rate by 0.50 percentage points, to 2.25%.

The Bank Rate is now at its highest level for 14 years.

Five members voted to raise Bank Rate by 0.5 percentage points, three members preferred to increase Bank Rate by 0.75 percentage points, to 2.5%, and one member preferred to increase Bank Rate by 0.25 percentage points, to 2%.

Steve Seal, CEO, Bluestone Mortgages, said: “Today’s decision will be a tough pill to swallow for consumers and borrowers across the country, as rates rise for the seventh consecutive month amid the ongoing cost of living crisis. As rates are expected to rise even further to battle soaring inflation, people will no doubt continue to feel the squeeze on their personal finances and face affordability challenges in the coming months.

“Now more than ever, brokers have a critical role to play. Not only in supporting existing and would-be borrowers, many of whom will have never experienced so many consecutive rates, but demonstrating the range of options available to help them reach their homeownership dreams despite these market conditions. As for the customers who are concerned about how this rate rise will affect their ability to meet their mortgage repayments, we highly encourage them to speak to their lenders as early as possible. The earlier you engage, the more personalised support you will receive.”