Mortgage interest costs set to rocket

Soaring rates mean mortgage borrowers now face paying an extra £57,000 in interest over five years. If the Bank Rate rises to 3% in 2023, as forecast by Capital Economics, a borrower with a £400,000 mortgage will pay £86,000 in interest alone over the course of a five-year fix, according to analysis by Hamptons. This is £57,000 more than if they had taken out a mortgage in December, when the Bank Rate was at 0.1%. It means their interest payments over five years will be 195% higher than if they had done the deal 18 months earlier.

The Daily Telegraph