More than seven million homeowners in the UK currently have fixed-rate mortgages. While their monthly payments remain stable until their agreements expire, many are now approaching renewal periods at far higher rates than they originally signed up for.
The Bank of England estimates that average monthly mortgage costs could rise by around £80 for households moving onto new deals during the next three years. But experts warn many families could face increases significantly higher than that depending on market conditions.
According to the Bank, more than half of all mortgage holders are likely to see their payments increase.
At the same time, energy bills are once again expected to surge.
Rising instability in the Middle East has created fresh fears over global oil and gas supplies, causing wholesale energy prices to jump. Officials believe household gas and electricity bills will increase noticeably this summer and could remain elevated well into the winter.
The Bank predicts that the average annual energy bill could rise from roughly £1,641 to nearly £1,900 later this year.
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