Homeowners face mortgage payment hike

Millions of homeowners face higher mortgage payments this year as a result of interest rate rises, with the average fixed rate set to go up by almost £200 a month. While the Bank of England is expected to raise rates by as much as half a percentage point this week, taking them to 1.5%, the Government is not planning to offer any targeted support to borrowers. UK Finance data shows that 1.3m fixed-rate mortgage deals are ending at some point this year, forcing borrowers to refinance at a higher rate. There are also nearly 1.9m people on a variable or tracker mortgage, which move automatically in line with interest rates. With rates at 1.5%, the average fixed-rate borrower will have to pay around £190 extra a month to service their mortgage, according to UK Finance calculations.

The Independent