London property owners face largest mortgage increases

According to recent analysis, London home owners are being dealt the heftiest increases in mortgage payments, as the recent low interest rates come to an end.

Experts have warned home owners to prepare for changes to their mortgage payments following the recent meeting of the Bank of England’s Monetary Policy Committee. Experts warn that the last six years of low interest rates are about to end, which will mean monthly mortgage increases for most people, especially those in the capital.

Based on an average mortgage debt of £145,694, paying £592 a month, a 0.25% increase in the mortgage rate would increase the monthly payment to £610. When the increases reach 2%, the monthly mortgage payment will be £740. For property owners in London with an average mortgage debt of £322,283, the 2% interest rate increase would result in an extra £328 a month being paid.

Although https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Carney, the Governor of the Bank of England, has said that the rate increase will be gradual, homeowners are being warned not to be complacent, as lenders are already starting to remove their products with the lowest mortgage rates. Property owners could already be facing larger mortgage payments, before the Bank of England rate increases.

Experts warn that there are several economic factors that could affect the interest rates, and property owners should make sure they have the best possible deal available. Mortgage advisers should make sure they have CeMAP training to help customers find the most suitable product.



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