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The Rising Cost of UK Mortgages - How Much Will My Mortgage Repayments Increase?

The Rising Cost of UK Mortgages - How Much Will My Mortgage Repayments Increase?
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Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin07 Dec 2022

The ongoing crisis in living costs has resulted in soaring interest rates and an average uplift in residential mortgage payments of £71.50 in 2022 so far.

For most homeowners, the big question is how far rates will continue to climb and how much they might be expected to pay for their mortgage if the economy doesn't turn around quickly.

This month, Revolution has examined average mortgage costs across the UK and explored the rates payable on variable mortgages to demonstrate where costs are changing and what that might mean for your household budget.

Changes to Average Mortgage Costs in 2022

The average UK mortgage in December last year, for a property purchased through a mortgage, reached £282,038, with a 15% deposit of £42,306 leaving a balance of £239,732.

At the time, interest rates were around a median of 3.61%, equating to a cost of £1,214.35 based on a standard variable product.

Eight months later, we see a very different picture, with increases to the base rate pushing average interest rates to 4.25% on mortgage borrowing.

Monthly repayments on a variable rate residential mortgage have increased to a £1,285.25 average, or a £71.50 increase.

London is, perhaps unsurprisingly, been the region where mortgage repayments have peaked, with most homeowners paying an extra £128.97 a month.

Upmarket areas have been particularly affected, with monthly uplifts of £354.75 in Chelsea, £258.44 in the City of Westminster and £226.57 in Camden.

Elsewhere, monthly mortgage costs have risen the most in the following areas:


Monthly Mortgage Increase

Elmbridge Surrey


Three Rivers, Hertfordshire


St Albans, Hertfordshire


Waverley, Surrey


Managing Higher Mortgage Repayments

The changes to average mortgage payments are concerning, with most homeowners in the UK now paying over £70 more for the same mortgage than just a few months ago.

Other living costs have undoubtedly combined to reduce expendable income by a large margin.

Variable rate mortgages always have a proportion of risk because it is very difficult to forecast economic activities with any certainty, and the associated interest rates will rise or fall, sometimes without much warning.

In the months ahead, homeowners must remain aware of the changes to their mortgage repayments and seek professional financial advice where required.

Many lenders offer the opportunity to apply for repayment holidays. However, these may be limited to a maximum number of months within the term. Borrowers could also discuss temporarily switching to an interest-only mortgage to avoid defaulting.

If you are concerned about coping with your mortgage payments, particularly if you are on a variable-rate mortgage, please contact Revolution Finance Brokers for further assistance.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.