Bank of England raises interest rates for first time in three years: What the hike to 4% means for your mortgage and savings

The Bank of England has increased interest rates to 4%, marking the first hike in three years and the first since 2023. This decision follows concerns regarding a potential inflation spike and energy price shocks expected this winter. The move impacts millions of households, specifically affecting mortgage payments and savings accounts. This policy shift aims to address economic instability, though it represents a significant blow for many individuals managing their personal finances during this period.