More than 4.5m borrowers who are not on fixed rates face an average annual increase of £930 in repayments if interest rates rise by 1%, according to analysis which suggests that first-time buyers would be hardest hit.
Research by Savills suggests that the cost of borrowing for people with variable or tracker-rate mortgages — about 41% of borrowers — would rise by a total of £4.3bn if the Bank of England’s monetary policy committee was to vote for the rise.
This would rise to more than £10bn when the country’s 6.5m other mortgaged households see their fixed-rate loans expire.
