Mortgage hell as interest jumps

MORE than a million homeowners are facing a nightmare hike in mortgage payments after the Bank of England raised its interest rate to a 15-year high yesterday.

- Robert Kellaway

Those whose loans directly track the base rate will see monthly payments jump by about £47 on average.

The 0.5 per cent interest rate rise to five per cent comes as PM Rishi Sunak and Chancellor Jeremy Hunt fight to bring inflation down.

Trade association UK Finance said it meant a £569.16-a-year rise in the average tracker mortgage payment.

And those coming off a fixed-rate deal and facing the impact of all 13 rate rises since December 2021 must find on average £296.76 more a month, or £3,561.12 a year.

David Postings, of UK Finance, said: "Lenders are prepared to help anyone struggling with their mortgage payments.

"They have teams of experienced and understanding advisers who will develop a solution tailored to individual circumstances.

"Importantly, the level of homeowners in arrears remains low, meaning that most households are able to keep up with their monthly payments."

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