London homeowners looking to renegotiate their mortgage this year face a whopping £7,300 rise in annual costs as experts warn of the “grim reality” of rising interest rates.
The Bank of England is predicted to hike interest rates for the 13th consecutive time this year to 5.5 per cent in efforts to cool soaring inflation, with the decision set to harm property owners in the capital which are due to refinance their mortgage in 2023 and 2024.
Analysis by the Centre for Economics and Business Research (CEBR) predicts that the BoE rates rise will see mortgage rates average 5.1 per cent in 2023 and 4.6 per cent in 2024 – meaning homeowners nationally looking to negotiate fixed-term deals face a £8.7bn increase in payments.