Brits face paying £5.4k MORE on mortgages this year as interest rates soar amid cost of living crisis

BRITS face paying £5,400 more this year on their mortgage, stats suggest. 

Homeowners’ payments are set to rise as interest rates soar to combat rising inflation. 

Those on a £150,000 25-year mortgage on a standard variable rate would pay £1,800 extra this year.

And those with a £450,000 mortgage would pay £5,400 extra, L&C Mortgages figures show. 

The cost of living soared by 5.5 per cent in the year to January, with experts thinking it will pass seven per cent in April.

Some reckon it could rise by almost eight per cent, which has not been seen in 31 years, the Daily Mail reports.

Traders are also predicting seven interest rate rises this year as the Bank of England tries to control the spending squeeze.

It could leave the Bank’s base rate at two per cent, the highest since 2009.

The increasing cost of living will put pressure on Prime Minister Boris Johnson to scrap his 1.25 per cent rise in national insurance, set for April.

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Foreign Secretary Liz Truss insisted the rise was necessary to keep finances in good shape. 

But former Tory leader Sir Iain Duncan Smith urged the Government to look again. 

Investment platform Bestinvest’s Jason Hollands said many household finances will be squeezed over the coming months with rising prices, higher taxes and higher borrowing costs. 

But economist James Smith suggested the markets are overestimating the pace of rate rises, predicting a maximum of three this year. 

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