Millions of homeowners face £250 jump in monthly mortgage payments next year

The Bank of England has warned that homeowners and buy-to-let investors will need to pay thousands of pounds in extra mortgage payments next year. We explain what help is available if you’re worried about rising mortgage costs.

Couple doing paperwork
Rising mortgage costs could cause financial difficulties for 220,000 households
(Image credit: © Alamy)

The Bank of England has warned that about four million mortgage borrowers face a £250 jump in their average monthly payments next year, as a result of rising interest rates.

A typical customer with a fixed-rate mortgage that expires within the next 12 months could see their average monthly payment rise from £750 to £1,000, as they are forced to remortgage onto a higher rate, according to the Bank’s Financial Stability Report.

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.