Mortgage Repayments Set to Soar in 2023: Report Predicts £2,900 Increase for Remortgaging Households

The Resolution Foundation, a think tank, predicts that annual mortgage repayments for households remortgaging in 2023 will rise by £2,900, a significant increase from the previous year.

This increase is due to the "mortgage crunch," which is caused by prolonged inflation and the Bank of England's expected continued rise in base rates.

By 2026, the total annual mortgage repayment increase is expected to be £15.8 billion.

The increase is due to the rolling of existing fixed-rate mortgage deals onto new, higher-rate mortgages.

The report indicates that around 7.5 million households with a mortgage will be affected by the increased repayments.

The better news for the government is that the current mortgage crunch is less widespread than previous shocks.