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Half of borrowers see annual mortgage costs rise by nearly £3,000 per year

Half of borrowers see annual mortgage costs rise by nearly £3,000 per year
Shekina Tuahene
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Shekina Tuahene

Nearly half (47%) of UK mortgage holders have seen their mortgage payments rise by around £234 each month in the last year.

According to a survey by Bluestone Mortgages, which collated views from 2,000 adults, this is equal to around £2,808 extra on annual mortgage costs.

Younger borrowers have been hit with the largest increases of £288 per month, against £156 for those aged 55+.

More than half of those who reported a jump in their annual mortgage costs in the last year said it was due to their fixed rate coming to an end, and 40% said it was because they were on the standard variable rate.

Overpay, switch or mortgage holiday

In order to keep up with monthly payments, around 16% of mortgage holders have been overpaying while they were on a lower rate, 7% have switched to an interest-only rate and a further 7% have asked for a mortgage holiday.

Nearly a tenth said that they had borrowed money from their family and 5% have borrowed from friends.

Steve Seal, CEO of Bluestone Mortgages, said: “As inflationary pressures and rising cost of living continue to squeeze the nation’s pockets, borrowers are no doubt feeling anxious about how they are going to balance increased mortgage payments with their everyday bills.

“However, there is a glimmer of hope on the horizon as following two consecutive rate holds, lenders are starting to drop their rates, which will ease affordability pressures. For those still concerned, remember that there is help at hand, whether that be opting for a product transfer, asking for a payment holiday or being signposted to specialist support.

“The earlier they engage, the sooner they will receive the tailored support they need for their unique circumstances to make their homeownership dream a reality.”