Family say their mortgage has increased by £1,100 a month as Bank of England hike interest rates
A UK family has said its mortgage has increased by £1,100 a month - as homeowners react to the latest Bank of England interest rate hike.
Dave Wells, 34, had been on a two-year fixed-rate mortgage at 3.7% after he bought a three-bed home in North London with his wife, Alissa Wells, 34, in 2021. The fixed rate is now due for renewal and Dave, a public affairs director, got a shock when checking his mortgage hub.
The couple, who have a two-month-old daughter, discovered after April, their mortgage rate is set to nearly double to 6.6% - an extra £1,100 a month. They have said there is no way they can afford the increase and that they’ll have to find a new mortgage provider.
Dave said: "When we bought the house, we did everything we were told to do by the government. We deliberately bought a house we could afford - the monthly repayments were well within our ark of affordability. But an extra £1,100 - there’s no way we can afford that.
"We were told two years ago that 3.7% was high and it would go down, but that’s totally changed now. We’re going to have to go back to the market at the end of our current fixed-rate.I knew the rate would go up from 3.7%, but I didn’t expect the rate to start with a six!"
They say despite both having "well-paid jobs" the new monthly cost is too high, especially with a new baby. Dave added: “We both have good jobs, and yet we’re really worried."An extra £1,100 a month - who on Earth can afford that?
"We need to know what the government’s plan is to help households - the £70 a month for bills isn’t even scratching the surface as it is.”
On February 2, The Bank of England announced interest rates would rise from 3.5% to 4%, its 10th consecutive rise. Interest rates were most recently increased in December from 3% to 3.5%