LONDON (CU)_Borrowers and lenders in the United Kingdom are now bracing for the end of an era of ultra-cheap mortgage, as experts project a rapid rise in costs over the next couple of years. With the Bank of England set to hike its base rate in the near future, these increases are expected to be passed on to borrowers, thereby raising the cost of servicing a mortgage by 5.6 per cent next year, and by 13.1 per cent the following year, according to the Office for Budget Responsibility (OBR).
These figures have left many households on the edge, as they are already struggling with increases in other living costs. The situation is even more frightful for so called “mortgage prisoners”, who could benefit by switching to a new home loan but are currently unable to move.
This week, Financial Conduct Authority (FCA) called on banks and building societies to…
