Persistently high interest rates to further raise costs when expensive new deals expire
More than 800,000 homeowners face a double mortgage rate shock as the Bank of England warns interest rates will stay high for years.
City analysts warned that mortgage holders who have taken out more expensive new deals since the Bank of England began increasing borrowing costs in December 2021 could be hit by another jump in housing costs when their current deals expire.
Analysts estimate that at least half of the 1.68 million households who have remortgaged in the last year have taken out two-year fixes.
These homeowners have had to move from rates of 1.5pc or 2pc onto new deals at around 4pc – more than double what they were used to.