...AND IT COULD GET EVEN WORSE

> Mortgage misery as interest now 4.5% >Fury at 12th rise in row, more expected

- GRAHAM HISCOTT

FAMILIES already crippled by soaring food and energy prices were yesterday dealt another blow with mortgage repayments rising due to another interest rate hike.

And homeowners were warned things could get even worse as Bank of England Governor Andrew Bailey could not rule out further rises in a bid to bring down rampant inflation.

Mr Bailey insisted the punishing wave of price increases has peaked and will "fall sharply" when figures for April are released later this month.

But despite the optimistic outlook, it did not stop the Bank voting to jack up interest rates from 4.25% to 4.5% - the highest since the 2008 financial crisis and the 12th in a row - sparking fury.

Financial markets expect the rises to hit 5% by the end of the summer.

Academic Richard Murphy branded the rate hike an "act of economic sadism" that will spark further misery for millions of mortgage borrowers.

It means another £29 a month for the average variable rate borrower with a typical £175,000 loan.

Someone taking out that sort of mortgage will shell out almost £5,800 more a year than before the Bank started rising rates in late 2021. For a typical £250,000 mortgage, it is nearly £8,000 more.

Mr Bailey, who earned nearly £600,000 last year, said it was "too soon to say if the Bank will announce more rate rises.