More than five million households are predicted to see their annual mortgage payments rise by an average of £5,100 between now and the end of 2024, according to a think tank. Some £1,200 of the average increase predicted reflects higher expectations of interest rate rises since the “mini-budget”, the Resolution Foundation said.
The number of mortgages on the market nosedived following the mini-budget. Lenders have gradually been bringing back new deals but have priced their rates upwards.
On Friday, Moneyfacts.co.uk counted 3,112 mortgage products available, compared with 3,961 on the day of the mini-budget. The average two and five-year fixed mortgage rates on the market are at their highest levels since 2008, standing at 6.47% and 6.29% respectively.
