Monthly mortgage repayment costs in York and across England and Wales have risen sharply in the past year, according to the Office of National Statistics.
It is expected that around 1.4 million people will be at risk of falling behind on their mortgage payments when they renew their fixed rate mortgages in 2023 due to the rising interest rates increasing the cost of borrowing, the ONS says.
Mortgage rates differ depending on the size of the loan relative to the value of the property that the homeowner has purchased.
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And in December 2022, house prices across York were 10.3 per cent higher than a year earlier, according to the ONS's UK House Price Index, and the average monthly repayment is £1,029.
However, Ben Hudson, the director of Hudson and Moody estate agents in Micklegate, said: "We are obviously well aware of the interest rate rises we saw towards the back end of last year, however I think it is fair to say that they are not as high as originally expected and still below the norm we have seen in the past.
"Whilst this is not necessarily great news for borrowers, savers are getting a better return on their money and first-time buyers are able to get onto the property ladder sooner.
"I’m not sure York will be any different to the rest of Yorkshire as this has affected the whole mortgage market."
The ONS has revealed the average repayment costs in York for each size of property – detached, semi-detached, terraced, and flats – how much they have risen since 2017, and the current average prices for each, as of December 2022.
- The average detached house in the city now costs £544,000, and the monthly mortgage rates have increased by 41 per cent to £3,262.
- For a semi-detached, the average price sits at £344,000, and mortgage repayments have increased by 39 per cent, to £1,999.
- For a terraced house, priced at £288,000, it has increased by 38 per cent, to £1,568,
- And for the average York flat, priced at £199,000, repayments have increased by 21 per cent to £1,029.
Scarborough has had the highest increase of mortgage rates across North Yorkshire and Harrogate has had the lowest.
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