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Average monthly mortgage payments rise by more than £70 in under a year

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  • 02/08/2022
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The average monthly payments for variable rate mortgages have climbed by around £71.50 since December last year, with the increase more pronounced in London and the South.

According to research from Revolution Brokers, the average house price in December 2021 was £282,038, with average deposit of 15 per cent suggesting that a typical borrower would take out a £239,732 mortgage.

The average mortgage rate in December came to 3.61 per cent, so borrowers on a standard variable mortgage paid £1,214.35 per month.

Since then, the base rate has risen by one per cent to 1.25 per cent, bringing average variable mortgage rates to 4.25 per cent and average monthly payments rose to £1,285.85.

The largest increase was in London, where payments have increased by an average of £128.97 per month.

Average monthly repayments roses by £354.75 in Kensington and Chelsea, £258.44 in Westminster and £226.57 in Camden.

Outside of London, average monthly payments in Elmbridge, Surrey roses by £19.12, followed by Three Rivers at £149.78, St Albans at £147.54 and Waverley, Surrey at £137.35.

Revolution Brokers’ founding director Almas Uddin said: “These payment increases are significant, to say the least. A national increase of more than £70 per month means that hundreds of thousands of households will have seen their disposable income squeezed even further, during what is already a very tough time.

“Variable rate mortgages always come with a modicum of risk as it’s difficult, sometimes impossible, to predict what economic ups and downs are on the horizon.

The coming months could be very difficult for the average homeowner, as interest rates look set to keep rising, putting even further pressure on our finances in the process.”

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