Mortgages could rise by £200 a month after interest rate increase

The mortgage expert gave a hypothetical scenario of a household which could pay £200 monthly in the wake of interest rates shooting up.

Mr Leonard added: “As an example, it’s estimated that the repayments on a £200,000 mortgage being renewed at a fixed rate of four percent, up from two percent previously, will increase by around £200 per month.

“Unfortunately, this increase in the base mortgage rate will have an impact on a homeowner’s monthly household budget.

“They may need to make changes to their spending habits or consider switching to a fixed-rate mortgage in order to secure a more stable monthly repayment amount.”

He also gave advice for households for families on a fixed rate mortgage which is coming up for renewal in the next year.