More mortgage pain to come as some to pay £200 more a month, experts warn

The trend towards homeowners taking out longer fixed-rate mortgages has delayed the impact of rising interest rates on some households

There is plenty more mortgage pain to come for the UK’s homeowners, according to the Resolution Foundation (Joe Giddens/PA) (PA Archive)

There is more mortgage pain to come for the UK’s homeowners, many of whom are yet to feel the full impact of rising interest rates, according to a think tank.

The trend towards homeowners taking out longer fixed-rate mortgages has delayed the impact on some households, with two-thirds of the eventual £12 billion increase in annual mortgage costs still to be passed on, the Resolution Foundation said.

The Bank of England increased the base interest rate to 4.5% from 4.25% on Thursday – the 12th rise in a row since rates started going up in December 2021.