The Bank of England, as expected raised interest rates for the 13th time in a row today (June 22).

But they have raised them to 5 % which is higher than some economists had hoped, meaning that they are now at the highest level since April 2008.

The rise was in response to inflation figures staying stubbornly high but will be a huge blow, even bigger than was feared, for those with a mortgage.

In what is being termed a mortgage time bomb, those needing to re-mortgage, are facing stiff rises in rates, with the average cost now over six per cent.