Homeowners will have to spend an extra £9billion in interest payments over 2023-24 as they re-finance, with rates doubling, research by the Centre for Economics and Business Research (Cebr) shows. Two and a half million homeowners will come to the end of fixed rate deals across 2023 and 2024 with another one million on variable rate deals.
Cebr has forecast mortgage rates across all deposit sizes will average 5.1 percent this year and 4.6 percent in 2024.
Moneyfacts reports that a buyer who took out a two-year fix in June 2021 paid an average rate of 2.59 percent. This would mean the yearly cost of a typical £200,000 loan has leaped by over £5,000.
London is expected to see the biggest rise in aggregate cost for refixers with mortgage costs up by £1.8bn over 2023 and 2024, a symptom of the £530,000 average price of a home in the capital compared to the UK average of £282,000.
Refixers in south east England will see the next highest rise in payments, up £1.7bn in 2023, according to Cebr.