Tracker mortgage and standard variable rate (SVR) mortgage payments could increase by nearly £300 and £200 a year respectively if the expected 0.25 per cent base rate increase this week takes place.
Experts widely expect the Bank of England to increase the base rate by 0.25 per cent to 4.5 per cent this week.
According to UK Finance figures, if the 0.25 per cent increase goes through, tracker mortgage monthly repayments would rise by £23.71 and SVR payments would increase by £15.14 per month.
This is equivalent to £284.52 per year for tracker mortgages and £181.68 per year for SVR mortgage deals.
UK Finance said that, as of December 2022, there were 639,000 tracker residential mortgages outstanding and 773,000 outstanding SVR mortgages.
This made up eight and nine per cent of residential mortgages outstanding in the UK, according to the trade body.
The current average rate for tracker mortgage is 4.6 per cent and for SVR deals it is 5.91 per cent.
The average current monthly interest payment for tracker deals is £436 per cent month and £358 per month for SVR deals.
A UK Finance spokesperson said: “Lenders stand ready to help anyone struggling with their mortgage payments. If you’re struggling, don’t put it off – speak to your lender as early as possible. Banks have a range of tailored options available to help and your lender will work with you to find the best option for your individual circumstances.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
