Homeowners face more pain following today’s decision by the Bank of England to increase interest rates another quarter of a percent, bringing the base rate to a 15-year high of 4.5%.
Those on a standard variable rate (SVR) could see their monthly mortgage repayments increase around £15.14, while tracker mortgages could increase by nearly £24, according to data published by UK Finance.
Since the onset of the BoE’s brutal 12-count hiking cycle tracker mortgages have increase by over £417 per month and SVRs over £266.
This latest hike is likely to bring on a yearly mortgage increase of more that £5,000 for the average borrower.
It's worth noting that about 81% of existing mortgages are fixed-rate deals.
Borrowers in this category will not experience the immediate impact of the base rate hikes until their fixed-rate period comes to an end.