Interest payments on fixed-term mortgages to rise

Analysis by The Mail on Sunday reveals the interest payments on fixed-term mortgages are set to increase by 55% this year to £500 a month. It also reveals the average cost for fixed-term holders is set to more than double from £322 at the end of last year to £701 a month by 2027. Meanwhile, for the minority of people on tracker mortgages, the increase in monthly interest is even greater as the average monthly repayment is set to rise from £436 to £950 over the next five years. Alice Guy, head of pensions and savings at Interactive Investor, said: “The UK is facing a staggering increase in mortgage costs in a story that is only just beginning to unfold. There are 6.9m UK mortgage-holders who are on fixed deals and, so far, only a few of them have moved on to new higher-rate deals. That means most of the pain is still to come.” 

The Mail on Sunday (19/03/2023)