The Bank of England raised interest rates today to 3.75%. The move was hardly unexpected as last month, only the governer’s casting vote prevented a rise. 0.25% doesn’t sound like much does it? Apparently it means ?9 per month extra on a ?60,000 mortgage. Not too bad. However, the smart money is on the trend continuing until we’re at 5% by the end of 2004. 5%… that’s getting on for a ?50 per month rise in the mortgage payment… that’s gonna hurt some people.

Fortunately we’re on a fixed rate for the next 2 years and we have negligible debt as a result of paying nearly everything off with the house move money. Unfortunately, we have no savings either :)