A BRADFORD-based mortgage broker has reacted to the latest financial warnings from the Bank of England.

The UK is set to fall into its longest recession since the financial crisis with inflation likely to peak at more than 13 per cent as gas prices soar.

Decision makers hiked the Bank’s base interest rate to 1.75 per cent from 1.25 per cent, the biggest single rise since 1995.

Mark Hosker, director of Cyborg Finance in Laisterdyke, said: “Mortgage lenders in recent weeks have been increasing their rates in anticipation of Thursday’s rate increase.

"Existing mortgage borrowers with six months or less remaining on their initial term should start the discussion with their mortgage adviser today. A two-year fix is short-term and may land borrowers back into a market with high-interest rates.

“A five-year fix gives borrowers certainty of payments for a longer term with fingers crossed inflation has been handled with interest rates decreasing again as a result.

"Variable rates are much lower than a fixed rate mortgage and may draw some attention but come with the risk of them increasing and giving borrowers no certainty.

“A long-term fixed rate mortgage can look attractive but borrowers who may sell their home should be wary of early exit fees."

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