Family say their mortgage has increased by £1,100 a month as Bank of England hike interest rates

A UK family has said its mortgage has increased by £1,100 a month - as homeowners react to the latest Bank of England interest rate hike.
Watch more of our videos on Shots! 
and live on Freeview channel 276
Visit Shots! now

Dave Wells, 34, had been on a two-year fixed-rate mortgage at 3.7% after he bought a three-bed home in North London with his wife, Alissa Wells, 34, in 2021. The fixed rate is now due for renewal and Dave, a public affairs director, got a shock when checking his mortgage hub.

The couple, who have a two-month-old daughter, discovered after April, their mortgage rate is set to nearly double to 6.6% - an extra £1,100 a month. They have said there is no way they can afford the increase and that they’ll have to find a new mortgage provider.

Dave said: "When we bought the house, we did everything we were told to do by the government. We deliberately bought a house we could afford - the monthly repayments were well within our ark of affordability. But an extra £1,100 - there’s no way we can afford that.

"We were told two years ago that 3.7% was high and it would go down, but that’s totally changed now. We’re going to have to go back to the market at the end of our current fixed-rate.I knew the rate would go up from 3.7%, but I didn’t expect the rate to start with a six!"

They say despite both having "well-paid jobs" the new monthly cost is too high, especially with a new baby. Dave added: “We both have good jobs, and yet we’re really worried."An extra £1,100 a month - who on Earth can afford that?

A family say their mortgage will increase by £1,100 a month A family say their mortgage will increase by £1,100 a month
A family say their mortgage will increase by £1,100 a month

"We need to know what the government’s plan is to help households - the £70 a month for bills isn’t even scratching the surface as it is.”

On February 2, The Bank of England announced interest rates would rise from 3.5% to 4%, its 10th consecutive rise. Interest rates were most recently increased in December from 3% to 3.5%