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.