The average mortgage rate when refinancing in April this year was 5.33%, almost triple the rate in April 2022, when it was 1.78%, Mojo Mortgages reveals.
The Bank of England (BoE) has raised the base rate from 0.1% at the end of 2021 to the current 5.25% to tackle inflation, which has led to mortgage rates rising in recent years.
For a £250,000 mortgage over 20 years, the monthly payment in April 2022 was £1,238, up from £1,695 last month, an increase of £457 per month.
Mojo reveals that the increase would be an additional £5,484 per year and £10,968 over a two-year fixed rate.
The research is based on figures from UK Finance showing that the number of mortgaged properties repossessed in Britain has increased by 36% in the first quarter of 2024.
It showed that 870 properties were seized between January and March 2024.
Meanwhile, data showed that 96,580 homeowners had mortgage debt of 2.5% or more of the outstanding balance, representing a 3% increase from the previous quarter.
Within this group, 32,470 mortgages were in the most severe category, with payment arrears of more than 10% of the balance, an increase of 6% compared to the previous quarter.
The cost of living and rising household bills have been cited as the main factors behind this alarming trend.