Five million households are predicted to see their annual mortgage payments rise by an average of £5,100 by the end of 2024, a think tank has said
Some £1,200 of the average increase predicted reflects higher expectations of interest rate rises since the "mini-budget", the Resolution Foundation said.
The Foundation, which is focused on improving the living standards of those on low-to-middle incomes, emphasised that its mortgage cost estimates are "very sensitive to fiscal, as well as monetary, policy developments in the months and years ahead". Affected households in London will see the biggest increase, with average payments projected to rise by £8,000 over this period - more than twice the level of the £3,400 increase experienced by households who are impacted in Wales.
The think tank also said that, although higher income households will face the biggest increases in mortgage costs in cash terms on average, it is lower income families with mortgages that face the biggest increase as a share of their income. The Foundation said it also noted that a higher interest rates climate will create "winners" as well as "losers", with higher rates potentially benefiting retired savers and those who are saving up to buy their first home.
The report added: "However, close to four in 10 voters in 'red wall' seats at the last election were mortgaged homeowners."
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