Mortgages to rise by almost £10k a year if interest rates hit 6%

Mortgage repayments could surge by as much as £800 per month for the typical homeowner as financial markets bet on 6% interest rates next year. Markets expect a series of sharp increases to take the headline rate to 6% or above next year, the highest rate since 2000, in the wake of market chaos following the mini-Budget. Someone who bought in the first half of 2021 - and so whose two-year fix expires next year, when the base rate could be 6% - will see their monthly repayments jump from below £900 to £1,696, or £800. This amounts to £9,600 a year more. If the base rate increases from 2.25% to 3% before November, that would take the average rate on a two-year fix for someone with a 25% deposit from 4.14% to 4.89%. 

The Daily Telegraph (26/09/2022)   The Independent (26/09/2022)   The Times (26/09/2022)