More than five million households could see their annual mortgage payments rise by an average of £5,100 between now and the end of 2024, a leading think tank has warned.
In total, mortgage payments are set to rise annually by £26bn over the next two years, according to the Resolution Foundation.
Affected households in London will see the biggest increase, with average payments projected to rise by £8,000 over this period – more than twice the level of the £3,400 increase experienced by households in Wales.
The impact in London will be concentrated, however, as less than a fifth (19%) of households there have a mortgage.
“Households across Britain are currently living through an inflation-driven cost-of-living crisis as pay packets shrink and energy bills rise,” said Lindsay Judge, research director at the Resolution Foundation.
“With almost half of all mortgagor households on course to see their family budgets fall by at least 5% from higher payments, the living standards pain from rising interest rates will be widespread.”
While some homeowners on variable rate deals will see their costs increase immediately, the impact on the majority of mortgaged homeowners, who are on fixed-rate mortgages, will build over the coming years as they move off lower rates on to new deals, the think tank added.
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Mortgages have been one of the many areas thrown into chaos following the government’s mini-budget at the end of September.
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Mortgage burden to hit 80s levels
Average two-year fixed mortgage rate now at highest level since 2008
Lenders have gradually been bringing back new deals, but have increased their rates in doing so, with the average two and five-year fixed mortgage rates at their highest levels since 2008, standing at 6.47% and 6.29% respectively.
On Friday, 3,112 mortgage products were on the market, compared with 3,961 on the day of the mini-budget, according to Moneyfacts.co.uk.
The Resolution Foundation explained that by early 2025, half of all mortgaged households will have seen higher mortgage costs absorb at least 5% of their net income, according to its current projections.
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21:40
Mortgages: Your questions answered
Higher interest rates will create ‘winners’ and ‘losers’
Higher income households will face the biggest increases in mortgage costs in cash terms on average, it added, but warned that lower income families will face the biggest rise as a share of their income.
Some households may be able to avoid higher costs by using savings to reduce their mortgage balance, or by downsizing to a less expensive home.
The think tank also noted that a period of higher interest rates will create “winners” and “losers”, with some people able to benefit from the increased rates, such as retired savers or those who are saving up to buy their first home.
“Regardless of how the future unfolds, it is fair to assume that higher interest rates will cause not only (often serious) problems for a very large number of households, but have significant political ramifications as well,” the foundation stated.
Comedy writer Bill Dare, – who worked on shows including Spitting Image and Dead Ringers – has died after an accident overseas, his agent said.
Described as a “super producer” by his peers, Dare, 64, worked on eight series of hugely popular satire puppet show Spitting Image.
Airing on ITV during the 1980s and 1990s, the show delighted in lampooning public figures including politicians, celebrities and royalty, winning BAFTAs and Emmys. It was rebooted in 2020.
Dare also created Dead Ringers, a comedy impressions show broadcast on BBC Radio 4.
He also produced The Now Show, a satirical take on the news which ran on Radio 4 from 1998 to 2024.
Dare worked on a wide range of comedy shows during his career, including the radio production of The Mary Whitehouse Experience in the late 1980s and early 1990s. He had also written several novels.
In a statement released on Monday, his agent JFL Agency confirmed he died at the weekend.
A spokesperson said: “We are shocked and greatly saddened to have to announce the death of our brilliant client Bill Dare, who died at the weekend following an accident overseas.
“Our thoughts are with his wife Lucy, daughter Rebecca, and with all of Bill’s family and friends who will be devastated by his loss.
“Bill was a truly legendary producer and writer, and his comedy instincts were second to none.”
Image: Oasis depicted on Spitting Image in 1996. Pic: ITV/Shutterstock
Colleagues were quick to pay tribute and reflect on his talent.
Impressionist Jon Culshaw wrote on X: “It’s impossible to express the unreal sense of loss at the passing of the incredible Bill Dare. The wisest comedy alchemist and the dearest, dearest friend. Much love to Lucy and all Bill’s family and friends. We shall all miss him more than we can say.”
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David Baddiel posted on the social media platform: “Just heard that the original producer of The Mary Whitehouse Experience on radio, Bill Dare, has died. Bill was an amazing creative force. I owe him much. RIP.”
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Former EastEnders actress Tracy-Ann Oberman said she was “devastated” and that her “entire comedy career was down to Bill”.
She wrote: “When I was on the BBC Radio 4 rep company early on in career – I ran into Bill in the corridors – He asked if I was good at accents. I said yes.
“He cast me in a sketch show. I had to do about 15 different accents. We recorded in front of a live audience at Broadcasting House – afterwards Bill said ‘Why have I never met you – you’re going to have a big career’.
“He was incredibly loyal and supportive and really opened a path for me into the R4 comedy world and then TV having come out of the RSC and theatre it was all new. I will always be grateful. Fly high Bill.”
Comedian and writer Mark Steel wrote: “This is so grim. Bill was a compassionate hearty soul with the ability to be beautifully grumpy, a marvellously thoughtful comic mind.
“He’d argue but always listen and you’d always laugh, he made a million shows and wanted them all to matter and would have made a million more.”
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Have I Got News for You writer Pete Sinclair said: “I am utterly devastated by Bill’s death. I still can’t believe it. He was a comedy genius. A hugely talented writer as well as a brilliant producer. A close friend and co-writer. I cannot begin to say how much I’ll miss him.”
Julia McKenzie, comedy commissioner for Radio 4, said: “I am so terribly sorry to hear this tragic news and my thoughts are with Bill’s wife, family and friends.
“Bill has been a huge part of Radio 4 comedy for decades, as a writer and producer, and listeners will have heard his legendary name at the end of many of their favourite shows.
“Bill was a comedy obsessive, and very instinctive about making the funniest choices when it came to writing, directing and editing.
“He cared so much about his work that in the production booth during Dead Ringers you’d see him crouched over the script, utterly focused on the show.
“He was funny and very dry in person, amusingly cynical when he needed to be and always pushed to keep the comedy he made, and particularly satire, spiky.
“I’ve known and worked with him for 18 years and like many I can’t believe he has gone, he will leave a big hole in the comedy world and in our hearts.”
An ex-prison officer who boasted about performing a sex act on an inmate who “manipulated” her has been jailed.
Mother-of-one Katie Evans, 26, burst into tears in court as the judge described how she was “corrupted” by an “experienced criminal” not long after she started work at Doncaster Prison when she was just 21.
As well as starting an intimate relationship with the prisoner, Daniel Brownley, Evans had more than 140 phone calls with him, moved money around bank accounts for him, and supplied him with information the prison held on him, the court heard.
Brownley had been jailed in 2016 for attempted robbery, burglary and handling stolen goods, the court heard.
“It appears you indulged in some form of sexual activity in the prison. It has been described that on one occasion you had oral sex with him,” Judge Jeremy Richardson KC told Evans at Sheffield Crown Court.
“It is truly a terrible situation for a judge to be passing sentence on a former prison officer who has been branded a corrupt prison officer.”
Judge Richardson told Evans “he corrupted you and not the reverse”, adding: “I’m entirely satisfied you were manipulated by an experienced criminal to assist him.”
He said Evans was “young and immature” at the time but added: “Your misconduct materially affected the good order and discipline of the prison.”
“You were inexperienced and immature but that is, however, no excuse for what you did.”
Judge Richardson said the sentence of 21 months should have been longer but, “purely as an act of mercy”, he reduced it to take into account the effect it will have on Evans’ relationship with her young daughter and the difficulties she will have in prison as a former officer.
Evans, of Hatfield, Doncaster, admitted misconduct in a public office at a previous hearing.
Still crying, she waved at family members in the public gallery as she was led from the dock.