Families across Bath who are coming off their low-rate fixed mortgage deals could see repayments rise by nearly £4,000, analysis has revealed.
Average annual mortgage repayments have increased by around £3,990 in the city because of rising interest rates which jumped following former Prime Minister Liz Truss’s mini-budget.
The cost of a two-year fixed-rate mortgage now stands at 5.75%, compared to 3.95% in August, the month before the mini-budget.
Data from the West of England Combined Authority suggests there are around 5,300 households in Bath and North East Somerset who have fixed term mortgages concluding before the end of 2023.
Metro Mayor Dan Norris, who has responsibility for regional economic development, said: “We’re talking serious sums here. £300 less a month in your pocket will hit people hard.
“It will undoubtedly have knock on effects on the wider economy too as it will mean people spending less on the shops and on leisure activities.
“This mortgage penalty is another bitter blow for Bath families who are paying the price of 13 years of Conservative economic mismanagement.
“I fear that many people already suffering in this unprecedented cost of living crisis will find the cost hikes a big shock when they come to renew their mortgages.”
