🏠 The largest hike in interest rates in almost 30 years will push up mortgage payments for millions of people by hundreds of pounds a year as experts warned of a rise in repossessions.
The average outstanding balance for a standard variable mortgage holder is £76,499. Factoring in today’s interest rates hike, their average monthly payments will have risen by £105.19 since the end of 2021 and by more than £30 since the last interest rate rise in June.powered by huge rises in fuel, energy and food bills.
will certainly start to hit people’s budgets at a time when funds are already stretched due to the cost-of-living crisis. “In the next year, there will be thousands of borrowers forced to walk out into a completely different interest rate environment and secure a new deal. An increase to 2.5 per cent would see monthly payments soar to £1,121, a difference of £180, she added, with Quilter analysis showing the number of mortgage repossessions can rise in correlation with increases in interest rates, with the numbers having their homes repossessed already on the rise.
“This time around, we seem to be on a more rapid upward trajectory which could come as much more of a shock to people’s finances, and we could potentially see an increase in terms of repossessions as a result.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hard-up Brits will be hit by year-long recession as interest rates hit 1.75%HOUSEHOLDS were told yesterday to prepare for a 15-month recession and the highest inflation rate in 42 years. In what was dubbed a Black Thursday for the economy, the Bank of England raised intere…
Read more »
Bank boss says ‘absolute priority’ to control inflation as rates jump to 1.75%The dire economic conditions will see real household incomes drop for two years in a row, for the first time since records began
Read more »
Interest rates rise in biggest increase for years - how it will affect mortgagesThe Bank of England has today (August 4) announced a 0.5 per cent rise in interest rates in the UK, with the current rate now standing at 1.75 per cent - the biggest rise since 1995.
Read more »
'Interest rates rise means I owe £250 a month more on loans'Four people explain the change in their circumstances due to the rise in interest rates.
Read more »
Rishi Sunak comes out fighting on inflation amid warning of rise to 15%Two think-tanks predicted that the soaring price of gas and food will send inflation close to 15% in 2023, for the first time since the early 80s, while the retail price index could hit 17.7%
Read more »
Britain is heading for long recession, Bank of England warns as it imposes biggest interest rate rise in 27 yearsThe Bank of England will have to raise interest rates even further if it does not act now to curb inflation, governor Andrew Bailey has warned.
Read more »