Mortgage customers had been hoping that the worst was over in terms of rate rises, but stubborn inflationary pressure seems to have put paid to that.
Markets are now pricing in a extra 0.50% on the bank rate when the Monetary Policy Committee meets on 22nd June.
A borrower with a £100,000 mortgage could see monthly repayments increase to £649 per month – and increase of £264 per month on the £385 per month costs before the series of rate hikes commenced in December 2021.
The table below shows the impact of rate rises on a 2 year £100k tracker mortgage at 75% LTV – as at Nov 2021 before the cycle of rate rises started (the rate was 1.18% on a best buy tracker)
(These calculations assume a repayment mortgage 25 year term)
Mortgage repayments in Nov 2021 would have been £385 per month
| Rate hike date | Hiked by | New monthly payment | Cumulative monthly increase |
| 16 Dec 21 | 0.15% | £392 | £7 |
| 3 Feb 22 | 0.25% | £404 | £19 |
| 17 Mar 22 | 0.25% | £416 | £31 |
| 5 May 22 | 0.25% | £428 | £43 |
| 16 Jun 22 | 0.25% | £440 | £55 |
| 4 Aug 22 | 0.50% | £466 | £81 |
| 22 Sep 22 | 0.50% | £491 | £106 |
| 3 Nov 22 | 0.75% | £532 | £147 |
| 15 Dec 22 | 0.50% | £561 | £176 |
| 2 Feb 23 | 0.50% | £589 | £204 |
| 23 Mar 23 | 0.25% | £604 | £219 |
| 11 May 22 | 0.25% | £619 | £234 |
| 22 Jun 22 | 0.50%??? | £649 | £264 |
| Research & Calculations by Moneycomms.co.uk 26.05.2023 | |||
