Interest rate rise: 0.5 per cent increase will add thousands to mortgage payments for London first-time buyers

First-time buyers are set to see monthly mortgage payments increase to more than £1,000 on average following the Bank of England’s decision to raise interest rates by 0.5 per cent.

Average monthly mortgage payments for new buyers were £813 in January this year. But, after six rate rises they have increased to a national average of £1,030 per month for new borrowers, according to Rightmove.