UK Homeowners Face Worst Mortgage Squeeze Since 1990s as Costs Rise to 6% and 5.67%

This is the worst mortgage squeeze since the 1990s housing crash, with homeowners facing an extra £2,900 a year in costs when their deals expire in 2024.

The average mortgage rate has risen above 6%, and renters are unlikely to see much relief as landlords will likely pass on the extra costs.

Homeowners will have paid an extra £15.8bn towards their mortgages by 2026, with £4.7bn of that coming in 2024.

The government has ruled out direct support for households, but pressure for fiscal support is growing.

However, any support could counteract the government's primary policy aim of halving inflation by the end of the year and risk stoking inflation even higher.