Mortgage consumers will still be subject to harsh interest rate increases in 2019 despite Friday's changes at 11 Downing Street, experts have warned.
In the three weeks since Kwasi Kwarteng, who was yesterday removed as chancellor, unveiled the mini-Budget, mortgage rates have increased at a record rate.
If interest rates continue on their trend, more than five million households will be paying £5,100 more year for their mortgage by the end of 2024
Although rates had been rising throughout summer, the think tank ascribed £1,200 of this increase to the recent three-week period.
Even with the company tax cut being postponed and Jeremy Hunt, the new Chancellor, in charge of the Treasury, markets still anticipate that the Bank Rate will fall just short of 5.5 percent next year.
This is a decrease from the 6.25 percent peak that markets had anticipated after the mini-Budget, but it is still higher than the 4.75 percent prediction made prior to the announcement of the tax cuts.