Martin Lewis has revealed roughly how much you can expect your mortgage to increase by if interest rates continue to rise, as the Mirror reports. Following Chancellor Kwasi Kwarteng’s controversial mini-budget last week, there have been concerns that interest rates could rise to 6% next year.
This would be to combat rising inflation after the pound plunged to an all-time low against the US dollar. Earlier this month, the Bank of England raised interest rates to 2.25% - the highest level for 14 years and the seventh hike in a row.
With further interest rate rises anticipated in an attempt to keep prices low, those households with a mortgage will be particularly affected (just under a third of households have a mortgage, according to the government's English Housing Survey). If you have a tracker mortgage, you will end up paying more as your monthly payments will move in line with the base rate.
