Mortgage warning as payments could increase £456 a month – how to find ‘the best deals’ | Personal Finance | Finance

Interest rates can vary between variable rates, such as discounted and tracker rates, and fixed rates.

As tracker mortgages track the base interest rates, those on these deals will see their payments increase.

Data from UK Finance in January 2023, the trade body for mortgage lenders, shows that roughly 715,000 households are currently on tracker mortgages.

Research by TotallyMoney shows the average UK property costing £270,708 on a variable rate and with a 75 percent Loan To Value (LTV) will see monthly mortgage repayments increase by £26.

Compared to December 2021, repayments could be £456 more each month.

For a £150,000 property, this would represent an additional £18 per month or a cumulative increase of £345 in monthly repayments. For a £400,000 property, this would represent an additional £48 on people’s monthly repayments, or a cumulative increase of £919 since December 2021.