Someone with a £200,000 tracker repayment mortgage and 25 years remaining would pay around £29 more a month if their mortgage rate rose from 4.55 per cent to 4.80 per cent. That is approximately £344 extra over a year if the rate remained unchanged.
A borrower owing £150,000 over the same term would face an increase of £21.48 a month. Someone with a £300,000 balance would pay nearly £43 more each month.
Anyone worried about keeping up with their payments can contact their lender, with specialist support teams available to help struggling borrowers.
Those on fixed deals are shielded from any immediate change. However, around 2.3 million fixed rate mortgages are due to expire by the end of 2027, according to UK Finance analysis. That means millions of borrowers will need to secure a new deal in the coming months, potentially at a higher rate than they currently pay.
Tim Grimsditch, Managing Director at Unbiased, warned GB News that inaction carries the greatest cost. variable rate.”