Approximately 1m householders will have their mortgage repayments upped by an average of £630 a year after several lenders' increase their SVRs next month.
Lenders planning to increase the rate, including Halifax and RBS, justified the move as a reaction to higher funding costs, the Metro reported this morning.
Two-year fixed-rate deals have already risen to 4.15% from an average low of 3.82% in October.
According to the price comparison website, MoneySupermarket, a borrower with a £150, 000 mortgage agreeing a new deal will pay an average of £320 extra a year.
The Council of Mortgage Lenders predicted that 45,000 homes would be repossessed in 2012, a rise of 8,800 from the 36,200 repossessed last year.
