Hundreds of thousands of households face a £3,000 mortgage bill surge as five-year deals expire, research from estate agency Hamptons reveals. Approximately 400,000 UK homeowners will incur an average monthly increase of over £250, or £3,000 annually, due to the Bank of England's base rate rise and resulting higher mortgage rates.
The study found that those who took out mortgages in 2021 are now paying significantly more than their initial borrowing rates. This trend is particularly pronounced across the South East and South West regions, where homeowners can expect average monthly hikes of £290 and £270, respectively.
A Government spokesperson acknowledged the concerns of affected households, advising that those facing higher mortgage rates seek professional advice and consider their options before making any changes to their deals. Meanwhile, UK nationals planning to secure or re-mortgage a property are urged to factor in current market conditions and consult with a financial expert.
The impact on the UK property market is expected to be significant, with some experts predicting a slowdown in house price growth as consumers absorb the increased mortgage costs. The long-term effects of this shift remain uncertain, although industry insiders anticipate a moderation in housing market activity.