The extent to which mortgaged UK homeowners on fixed-rate deals have been shielded from rising housing costs over the past decade compared with renters is underlined in new research that warns of tough refinancing conditions over the coming months.
Mortgaged owner-occupiers found their annual housing costs rose by 26 per cent in the 10 years to the end of 2022, compared with a 36 per cent jump in rental costs for tenants.
Yearly mortgage interest costs fell by 19 per cent to £29bn over the decade to 2022, but capital repayment costs rose by 77 per cent to £55bn, according to the research by estate agent Savills. While interest rates were at ultra-low levels for much of the past decade, UK house prices rose sharply and interest-only mortgages were less common than capital repayment loans.