Mortgage payers face squeeze in 2023 after UK interest rate rises

Wealthy people who own home outright will avoid higher costs and benefit from better return on savings

Homeowners with mortgages will be among the biggest losers from the cost of living crisis in 2023 due to interest rate rises, while the wealthiest UK households will benefit from better returns on savings and investments, according to analysis by a leading thinktank.

The Resolution Foundation said the way the government had tackled the spike in inflation this year - relying heavily on the Bank of England's interest rate rises - put mortgage households at the heart of the Britain's income squeeze".