Homeowners face biggest hike in mortgage costs since 2008 | Mortgages


Homeowners face the biggest rise in mortgage costs since the financial crisis, with the amount of interest they pay set to jump by 13% in 2023, data from the government’s independent forecasting unit suggests.

Politicians and analysts seized on a table “buried” in a report published by the Office for Budget Responsibility (OBR) alongside the budget, which stated that mortgage interest payments were set for their biggest rise since at least 2008.

The Liberal Democrats said the data indicated that householders with the average mortgage of £211,000 could see their payments go up by more than £500 a year, while the investment firm AJ Bell said some people with larger mortgages could have to pay more than £1,000 extra a year.

Interest rates are at a historic low of 0.1%, but the financial markets have priced in a rate rise when the Bank of England meets next week, which could lift the base rate to 0.25%, and then a 0.25-point increase in December….

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