The average mortgage rate when remortgaging in April this year was 5.33%, almost triple the figure in April 2022 when it stood at 1.78%, reveals Mojo Mortgages.
The Bank of England (BoE) has raised the base rate from 0.1% in late 2021 to the current 5.25% to tackle inflation, which has resulted in mortgage rates increasing over the past couple of years.
For a £250,000 mortgage over 20 years, the monthly payment in April 2022 was £1,238 compared to £1,695 last month, an increase of £457 per month.
Mojo reveals that the increase would equal an extra £5,484 a year and £10,968 over a two-year fixed-term rate.
The research follows figures released by UK Finance that revealed the number of mortgaged properties being repossessed in the UK has seen a significant 36% increase in the first quarter of 2024.
It found that 870 properties were repossessed between January and March 2024.
Meanwhile, data showed that 96,580 homeowner mortgages in arrears of 2.5% or more of the outstanding balance, representing a 3% increase from the previous quarter.
Within this group, 32,470 mortgages were in the most severe bracket, with arrears exceeding 10% of the balance, marking a 6% increase compared to the previous quarter.
The cost-of-living crisis and rising household bills have been cited as the primary factors driving this alarming trend.
