Mortgage costs to stay high until 2025 as experts warn more interest rate hikes are needed

Experts have warned that rates arebefore the end of next year as inflation remains stubbornly high.

Rishi Sunak will make a speech on Thursday, after the Bank of England is expected to confirmed another rise in rates, in which he will appeal to the public toThe Government has warned that it has no further plans to intervene in support of people who are struggling to afford their mortgage repayments in a world of higher interest rates. A No 10 spokesman said it was “concerning time for homeowners, for mortgage holders” but insisted there is a “raft of support” available.

He said: “I don’t think we’ll see inflation returning to 2 per cent before the end of next year, unless something comes along that is fortuitously helpful. That is the Bank’s forecast. It depends on what level interest rates go up to but I don’t think we should expect interest rates to come down from 4-5 per cent range in the short term, not until the end of next year.”

He said: “Both the financial support provided and the long period of low interest rates allowed financial reserves to be built up – this wasn’t distributed very evenly – but they are there and helping to support spending. That partly explains why the economy has been more resilient.”

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