Homeowners whose mortgages directly track the base rate face a total average annual bill hike of around £5,000, following 12 consecutive hikes in the Bank of England base rate. The average monthly tracker rate mortgage payment will increase by £23.71 following Thursday’s base rate hike, according to calculations from UK Finance. “The average five-year fixed mortgage rate is lower than the two-year fixed, which may encourage prospective borrowers to lock down their rate for longer. However, it said it will not pass on the 0.25 percentage point base rate rise to its mortgage customers on SVR or MVR (mortgage variable rate) deals. Rising mortgage rates have also been affecting rents, as landlords see their costs increase.

Source: The Times May 11, 2023 12:24 UTC