Understanding Mortgage Payments and Interest Rates

What is one strategy central banks use to control rising inflation?

• Lowering taxes

• Increasing money supply

• Reducing government spending

• Increasing interest rates

How did the Bank of England's base rate change from January to November 2022?

• It increased from 2.25% to 5.5%

• It decreased from 2.25% to 0.25%

• It remained constant at 0.25%

• It increased from 0.25% to 2.25%

What was the monthly repayment for a typical mortgage in January 2022?

• £1,615

• £1,115

• £500

• £2,000

What is the expected monthly increase in mortgage payments for every 1% rise in interest rates per £100,000 of mortgage debt?

• £100

• £200

• £50

• £150

What additional financial pressures are mentioned alongside increased mortgage repayments?

• Lower property taxes

• Higher energy bills and fuel prices

• Decreased wages

• Reduced grocery costs