Soaring interest rates to cost UK mortgage holders £12bn in extra payments

Impact of Bank of England’s decision to hike rates to 4.5% will be felt mostly by young families, thinktank says

Soaring interest rates will cost UK mortgage holders £12bn in extra payments, according to a leading thinktank which said the impact will be felt mostly by young families.

In a report that emphasised the dramatic impact of higher borrowing costs, the Resolution Foundation said the Bank of England’s 12 consecutive rates rises since December 2021 had already cost homeowners £4.2bn, with about £8bn more in extra payments likely over the next couple of years.