Hikes in housing
The main cost contributing to the rise is increasing mortgage and rental payments. The average monthly housing payment, which includes mortgage repayments, private and social housing rent, rose by £23 over the past year. This is mainly down to continued house price growth meaning that many of you are having to take larger mortgages, leading to higher monthly repayments. However, as interest rates are at record lows, as the cost of servicing a mortgage is also extremely low. There’s an opportunity for mortgage holders on a standard variable rate to reduce their payments by remortgaging to one of the historically low fixed interest rates before the Bank of England raises rates.