Mortgage prisoners' to face rates of over 8%

An estimated 195,000 "mortgage prisoners" are to face rates of over 8% after the Bank of England raised its main rate to 4.25%, the highest level in 14 years. The rates for the standard variable rate mortgages of those unable to remortgage have almost doubled since December 2021, rising from 4.4% to 7.12%. According to Moneyfacts.co.uk, once yesterday's rate increase filters down, this could soon hit 7.37%, an average increase of £386 a year. Andrew Montlake, spokesperson for Coreco mortgages, said: "Mortgage prisoners should not have any further rate increases subjected upon them. They have been paying over the odds for years through no fault of their own. Increasing the rate when it's already up to 8% is, in my view, not justifiable." In total there are 773,000 home owners on standard variable rates who are being hit hard by rapid rate rises, with the majority being people who have reverted to this rate after their fixed-rate deal has ended. 

I (24/03/2023)