Average annual mortgage repayments are set to rise by £2,900 next year

Annual mortgage repayments are set to rise by £2,900 for the average household next year, according to a think-tank.

Annual repayments are now on track to be £15.8 billion a year higher by 2026 compared with prior to the Bank’s rate-tightening cycle starting in December 2021, up from a projected £12 billion increase at the time of the most recent Monetary Policy Report in early May, the foundation said. This year’s rate rises are also predicted by the foundation to increase the cost of a typical mortgage by 3% of typical household income this year – even bigger than a 2.4% increase seen in 1989.

Back in 1989, nearly 40% of households owned a home with a mortgage, and were therefore exposed to rising costs.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Average two-year mortgage rate close to 6%Lenders have been increasing the cost of new fixed-rate deals rapidly during a tumultuous week.
Source: BBCNews - 🏆 3. / 97 Read more »

Annual mortgage repayments set to rise by £2,900 on average next year, says think tankInflation and interest rate rises from the Bank of England are both contributing to the increase, which will put a further squeeze on many families finances.
Source: SkyNews - 🏆 35. / 67 Read more »