An interest rate rise of just 0.5% could lead to monthly mortgage payments soaring by an average of 40% for first time buyers, levels not seen for a decade.
The Bank of England will tomorrow (Thursday, August 4) deliver its interest rates decision amid a cost of living crisis. According to Rightmove, average monthly mortgage payments for first time buyers are currently £976 per month, compared with £813 per month in January 2022, a rise of 20%.
If interest rates rise by 0.25%, the figure would rise to £1,003 nationally. The payments for first time buyers currently stand at 38% of an average gross salary, but a 0.5% rise would bring the level to 40%, something not seen since 2012.
