Mortgage costs expected to grow

The cost of a mortgage is expected to grow by £2,500 by the end of this year compared with December 2021, according to Zoopla. Economists anticipate mortgage rates to rise in the coming months, with the Bank of England looking to tackle soaring inflation, which is at 9.1% and set to climb. Grainne Gilmore, head of research at Zoopla, said: “Homeowners on fixed rate mortgages are sheltered from current rate rises, but prospective buyers are facing higher mortgage rates than six months ago.” Average rates for a five-year fixed-rate mortgage on a £250,000 loan, including a 25% deposit, currently stand at 3.37% - with this up from 2.64% in December. The rates increase over the six-month period is the equivalent of more than £870, which Zoopla says will jump to £2,500 in extra costs should rates rise by another basis point. City AM