UK home owners with a typical £100,000 mortgage will have to pay £80 more on monthly repayments than they did last summer, thanks to another rise in interest rates. Mortgage lenders who pass on the rate rises to their customers will add about £16 a month to the typical mortgage bill of a family.
Home owners in London with a £200,000 mortgage are likely to see monthly repayments increase by around £33 as a result of the interest rate rise, taking the annual increase up to £160.
Living in a flatshare, especially in London, is starting to look like the safe option: Citizens Advice said the latest move on rates could spell "disaster" for home owners already struggling to keep financially afloat.
Peter Tutton, social policy officer at Citizens Advice, said the additional cost of a further rate rise would hit some homeowners hard: "We know some people are taking on mortgages that stretch them to the absolute limit. A rise in mortgage interest rates could spell disaster for people whose finances are balanced on the very edge of affordability."
Would-be first time buyers in London may have to live in a flatshare a little longer in order to save up, although increasingly parents are helping their adult children with deposits in order to get them on the property ladder.
