Homeowners face hit as cheap mortgages expire

Almost 600,000 people who remortgaged in 2018 ahead of an expected interest rate rise risk paying an extra £1,700 a year on their mortgages as the cheap fixed-rate deals expire. The Telegraph warns that those remortgaging will face a jump in monthly repayments as the market braces for the Bank of England to raise rates, with a hike to more than 2% on the cards as officials look to curb soaring inflation. If the Bank rate hits 2% by 2023 and lenders pass on the increases, the rate on a typical five-year fix would hit 4%, according to Moneyfacts. Those who took a cheap five-year fixed rate mortgage on a £200,000 loan in 2018 would find their monthly repayments rising by £140 a month on a new five-year deal, with this meaning £1,680 a year more in mortgage bills.

The Daily Telegraph