Monthly mortgage repayments soar by £200

Monthly mortgage repayments in the UK have increased by almost £200 since the Bank of England raised interest rates two years ago, according to official figures. On average, indebted households are now paying an extra £2,220 per year, resulting in a total of £20bn more being spent on housing costs. The average mortgage payment reached £903 in December, rising by £100 from the previous year. Martin Beck, chief economic adviser to the EY Item Club, said mortgage payments have risen more rapidly than earnings since the pandemic struck, hitting families' spending power. He said: "Even strong wage growth has not been sufficient to compensate for higher mortgages. Things are probably going to get worse as wage growth slows at the same time as mortgage payments continue to climb, reflecting the fact that 1.5m households are going to refinance this year at higher rates".

The Daily Telegraph (13/01/2024)