Mortgage warning: Millions face £250 increase to payments in 2023 – what to do next | Personal Finance | Finance

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“Independent financial advisors and comparison sites are good sources to learn more about a wide range of mortgage products.”

The Bank of England raised interest rates on December 15 from three percent to 3.5 percent – it puts the Bank rate at its highest level since 2008.

The estimated two million homeowners on variable rate deals, such as base rate trackers, will see an almost immediate rise in their monthly repayments following the latest Bank rate rise.

As an example, a tracker rate rising from four percent to 4.50 percent costs around an extra £50 a month on a £200,000 loan.

Those on fixed-rate deals, where the interest rate is locked in for, say, two or five years, won’t see any difference in their monthly payments. 

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