Mortgage borrowers whose deal directly tracks the base rate will see their payments increase by around £49 per month on average, adding up to nearly £600 annually, as a result of the Bank of England’s base rate hike announcement on Thursday.
The figures, from trade association UK Finance, also showed that a borrower sitting on their lender’s standard variable rate (SVR) will typically see a monthly increase of just under £31, adding up to around £370 per year. Nearly four-fifths (78%) of residential mortgages outstanding are fixed rates, meaning these borrowers will not see the immediate impact of the base rate hike from 1.75% to 2.25% - the highest level since November 2008.
But, if they have been safely locked into their home loan for a while, they may find they get a bill shock when they do eventually re-mortgage. Something Money Saving Expert founder, Martin Lewis, shared with viewers on his Money Show Live TV Show this week.
