![]() ![]() Around eight in 10 residential mortgages outstanding are on fixed rates, cushioning homeowners from the immediate impact of base rate hikes, although borrowers may get a bill shock when their fixed deal ends and it is time to remortgage. The average SVR will have increased by 251.34 per month, or £3,016 per year, assuming base rate hikes are fully passed on. ![]() ![]() It calculated that, since December 2021, the average tracker mortgage payment will have increased by £393.65 per month - or around £4,724 per year. UK Finance's figures are based on average outstanding balances and payments. ![]() Homeowners end up on SVRs when their initial deal comes to an end and the SVR is set by individual lenders. According to figures from trade association UK Finance, the latest Bank of England base rate increase, from 4% to 4.25%, will typically add £23.71 per month - or more than £284 per year - to the cost of a tracker mortgage.īorrowers on a standard variable rate (SVR) meanwhile will see their costs increase by £15.14 per month - or more than £181 per year - on average if the rate hike is passed on by their lender. The new increase, announced on Thursday (March 24), means mortgage borrowers on deals which track the Bank of England base rate will now see nearly £24 per month added to their costs on average. "Don't wait to contact your lender or speak to a reputable free debt advice charity like StepChange. For anyone worried about rising housing costs and their ability to meet financial commitments, the most important thing is to reach out for help as early as possible. Peter Tutton, the charity's head of policy, said: "Another rate rise, alongside this week's news of rising inflation, is the latest in a succession of body blows to household finances. StepChange says that 17% of its new clients are already behind on their mortgage payments. Households have suffered another "body blow" to their finances with the latest increase in the Bank of England interest rate, a debt help charity has said. ![]()
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