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Mortgage costs 'set to rise'
17/11/10
Edited by Bob Witham.Figures released earlier this week show a sharp drop in mortgage repayments since 2008 has lowered household running costs, but residential property owners should not expect these conditions to last, according to one expert.
The research by Sainsbury's Home Insurance revealed Britons will shell out an average of £3,466 in capital and interest payments this year, down 27.67 per cent on the figure for 2008.
However, Timothy Lambert of City-based property investment consultant Ducalian, said mortgage costs will rise over the next few years, as the Bank of England's base rate climbs from its current record low.
In addition, home loan repayments will be pushed up as cheaper fixed-rate deals come to an end.
"In summary, these figures are positive now, but [are] also very much a short-term result. I very much doubt they will be the same in 12 months," Mr. Lambert commented.
Overall, Sainsbury's Home Insurance said the average annual cost of running a home is £8,059, which equates to a drop of 13.6 per cent on two years earlier.
