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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

The number of deals on the market nosedived after former chancellor Kwasi Kwarteng announced his fiscal policy in the House of Commons.

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.

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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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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.

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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.

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Major companies part of drive to get thousands of offenders in work

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Major companies part of drive to get thousands of offenders in work

Bosses of leading high street businesses are set to lead a new drive to cut crime and get ex-offenders into stable jobs.

It’s part of a government initiative creating 11 new regional employment councils across England and Wales.

Leaders from firms including the Co-Op, Iceland, Greggs, and Oliver Bonas will provide voluntary advisory roles in conjunction with probation, job centres, and the Department for Work and Pensions.

The idea is to help ex-prisoners find work while they serve the remainder of their sentence in the community.

The government says roughly 80% of offending is reoffending, while the latest data shows offenders unemployed six weeks after leaving jail have a reoffending rate more than twice that of those in work – 35% versus 17%.

The employment councils will supplement the work of existing employment advisory boards, created by the former Timpsons chief executive, now prisons minister, Lord Timpson.

The advisory boards bring local leaders into 93 individual jails to help provide education and training advice, but largely stop at the prison gates.

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The government wants the new councils to act as better bridges for offenders, under one umbrella – bringing together probation, prisons and local employers, helping prison leavers look for work.

This will include connections with work coaches at job centres that will provide mock interviews, CV advice and training opportunities in the community.

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Lord Timpson called the new scheme and partnering with business a “win win”.

“Getting former offenders into stable work is a sure way of cutting crime and making our streets safer,” he said.

Last month Sky News heard from former offender, Terry, now employed at the cobblers and key cutters Timpsons, about what he calls an “invisible stigma” for those with criminal records seeking employment.

He said getting a secure job was life-changing because without other options “you’re probably going to think about doing crime”.

Annie Gail, head of social impact at Cook Foods, which is taking part of the government’s new scheme, also told Sky News that prison leaver programmes such as theirs are “challenging”.

She said having ex-offenders in public-facing roles “can cause concern” but insists “good business is about more than just turning a profit” and instead is about being “a force for good in society”.

The new scheme is set to start next week, and plans to get thousands of ex-offenders into stable jobs, away from a life of crime.

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Boy, 17, stabbed to death at Bedford bus station

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Boy, 17, stabbed to death at Bedford bus station

A 17-year-old boy has been stabbed to death in Bedford.

Police say Thomas Taylor was walking along Greenhill Street, close to Bedford Bus Station, when he was attacked by a group of men at 5.50pm on Wednesday.

He was taken to hospital after suffering serious injuries and died a short time later.

A murder inquiry has been launched.

The attackers have not been caught. They were described as black and wearing dark clothes. They ran away in the direction of Hassett Street and Greyfriars car park, police said.

Detective Chief Inspector Katie Dounias said: “This is an absolutely shocking incident in which a teenage boy has been stabbed to death in a busy town centre.

“We have a dedicated team of detectives working on this investigation and supporting Thomas’s family at this incredibly difficult time for them.

“I would urge anyone who saw what happened or has any information to come forward and speak to police and help us bring those responsible to justice.

“We’re aware that there are images and videos circulating on social media, please refrain from sharing any such clips and instead contact police.”

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Bedford Academy headteacher Chris Deller said: “We are deeply upset and shocked to hear the sad news that a Bedford Academy student has lost their life.”

He described Thomas as a “popular, well-liked, and respected lad” who had recently finished Year 11, before heading onto sixth form.

“Our focus now is on supporting the family through such a difficult period, whilst helping our students and wider community to come to terms with such a tragic loss,” he added.

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Romanian grooming gang convicted of sexually exploiting women in Dundee

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Romanian grooming gang convicted of sexually exploiting women in Dundee

A Romanian grooming gang has been convicted of sexually exploiting 10 vulnerable women in Dundee.

Four men and one woman were found guilty of dozens of offences – including rape – following an extensive investigation into sexual exploitation, human trafficking, and the supply of drugs in the Tayside area.

Marian Cumpanasoiu, 37, Remus Stan, 34, Catalin Dobre, 44, Cristian Urlateanu, 41, and Alexandra Bugonea, 34, denied any wrongdoing but on Thursday were convicted following a trial at the High Court in Glasgow.

Detective Inspector Scott Carswell branded the offenders “deplorable” in an interview with Sky News’ Scotland correspondent, Connor Gillies.

The detective said the gang plied the women with alcohol and free Class A drugs at parties before coercing them into sexual activity, “which a lot of them didn’t want to do”.

He said: “But as things progressed, they were so addicted to the drugs that they knew the only way they could get the drugs was to perform the sexual acts that they were having to get involved in.”

Detective Inspector Scott Carswell
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Detective Inspector Scott Carswell

DI Carswell said the gang got the women addicted to drugs in a bid to control them and keep them coming back for more.

He added: “They’ve had no thought as to the impact this is having on the victims. It’s been quite controlled in that they knew what they were doing.”

The gang will be sentenced at a later date.

Police Scotland said the offenders were arrested and charged as part of Operation Recloir, which was launched in late 2021 to target a gang of suspected human traffickers in the Tayside area.

DI Carswell said the inquiry initially focused on brothel-keeping in Dundee and the suspected trafficking of Romanian females into the country.

He added: “However, into the summer of 2022 we started to receive information that the crime group were targeting vulnerable Dundee females, and it looked like they were grooming them and coercing them with gifts of free drugs and other things until it moved on to the victims having to get involved in sexual activity to get the free drugs.

“And unfortunately, this got them addicted to the class A drugs that had been provided.”

DI Carswell said many of the victims identified believed they were the girlfriends of the men involved and did not realise they were being “groomed and used”.

The detective said the women were looking to be “cared for”, noting: “However, I believe that the end goal here was to groom the females and possibly move them into prostitution.”

Read more from Sky News:
Timeline of the grooming gangs scandal
Grooming gangs are ‘in every single part of our country’

DI Carswell said it was important to build up the victims’ “trust and confidence” in order to get them to engage with the force.

He said: “That did take a lot of patience, and it was something that I was passionate about with my inquiry team from the start.”

DI Carswell added work remains ongoing to ensure the women’s welfare and long-term safeguarding.

The detective believes his team identified all the victims, but not everyone wished to engage with the inquiry.

DI Carswell added: “What I would say to them is even at this time if they don’t want to engage with the police, the support’s always there if they need help with anything on the back of this.”

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