Bath families coming off low-rate fixed mortgage deals face a huge £3,150 mortgage hike.

Analysis shows average mortgage repayments increased by around £3,150 in the area because of rising interest rates which jumped following former Prime Minister Liz Truss's mini-budget. The cost of a two-year fixed-rate mortgage now stands at 5.75% this month compared to 3.95% in August, the month before the mini-budget.

West of England Combined Authority data suggests there are 5,300 Bath and NE Somerset households with fixed term mortgages ending by the end of 2023. The news comes as the IMF chief economist singled out higher mortgage rates as a reason for Britain's poor performance after the country's growth was downgraded, leaving it as the only major economy expected to shrink in 2023.

Metro Mayor Dan Norris who has responsibility for regional economic development said: "We're talking serious sums here. £300 less a month in your pocket will hit people hard. It will undoubtedly have knock on effects on the wider economy too as it will mean people spending less on the shops and on leisure activities. This mortgage penalty is another bitter blow for NE Somerset families who are paying the price of 13 years of Conservative economic mismanagement. I fear that many people already suffering in this unprecedented cost of living crisis will find the cost hikes a big shock when they come to renew their mortgages."

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