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Annual mortgage repayments are set to rise by £2,900 for the average household remortgaging next year, according to a think tank.

As the UK’s “mortgage crunch” deepens, total annual mortgage repayments could rise by £15.8bn by 2026, the Resolution Foundation said.

Prolonged inflation has raised expectations that the Bank of England’s base rate-rising cycle, which started in December 2021, will continue for longer than originally thought.

Rates are now expected to peak, in mid-2024, at nearly 6%, the foundation said.

Those higher expectations are moving through into mortgage rates, with deals being withdrawn from the market and being replaced by higher rates.

Data released by Moneyfactscompare.co.uk indicated that the average two-year fixed-rate homeowner mortgage was just below the 6% mark, at 5.98%.

The Resolution Foundation said it is expected that the average two-year fixed-rate mortgage will not fall below 4.5% until the end of 2027.

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This would significantly increase the scale of the mortgage crunch currently unfolding, it said.

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Ed Conway on what inflation means for economy and mortgages

Annual repayments are now on track to be £15.8bn a year higher by 2026 up from a projected £12bn increase at the time of the most recent Monetary Policy Report in early May, the foundation said.

Around three-fifths of this increase in annual mortgage payments is yet to be passed on to households, as borrowers move off existing fixed-rate mortgage deals on to new fixed-rates, up to 2026, the report added.

This is expected to deliver a rolling living standards hit to millions of households in the run-in to the next general election.

This year’s rate rises are also predicted by the foundation to increase the cost of a typical mortgage by 3% of typical household income this year – even bigger than a 2.4% increase seen in 1989.

Read more:
Mortgage payers face largest home loan squeeze since early 1990s housing crash
More mortgage costs rise with ‘worse to come’
Bank boss ‘trying to limit the pain’ as mortgage rates continue to rise

The foundation, which focuses on improving living standards for those on low to middle incomes, said that the better news for the government, however, is that the current mortgage crunch is less widespread than previous shocks.

Back in 1989, nearly 40% of households owned a home with a mortgage, and were therefore exposed to rising costs.

By last year, the combination of more older people owning outright, and fewer young people owning homes at all, meant that the share of households with mortgages had fallen below 30%.

Overall, around 7.5 million households with a mortgage are expected to see their repayments rise by 2026, the report said.

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Simon Pittaway, senior economist at the Resolution Foundation, said: “Market expectations that interest rates are going to rise even higher, and stay higher for longer, are having a major effect on the mortgage market, with deals being pulled and replaced with new higher-rate mortgages.

“This means the mortgage crunch is now on track to increase mortgage bills by £15.8bn, with those re-mortgaging next year set to see their costs rise by £2,900 on average.”

A Treasury spokesperson said: “We know this is a concerning time for mortgage holders, which is why the FCA (Financial Conduct Authority) requires lenders to offer tailored support to borrowers struggling to make their payments, and we continue to support mortgage holders through the Support for Mortgage Interest scheme.”

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Fresh weather warnings issued as parts of UK threatened with blizzard conditions

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Fresh weather warnings issued as parts of UK threatened with blizzard conditions

Fresh yellow weather warnings for ice have been issued for many areas of the UK, as some areas are threatened with blizzard conditions on Thursday.

An amber warning for snow – covering northeast England, including Scarborough, Whitby and parts south of Middlesbrough – is in force until 9pm on Thursday.

UK weather latest: Blizzard warning for amber area

The Met Office said there could be “significant snow accumulations” over the North York Moors and parts of the Yorkshire Wolds with up to 25cm (10ins) on hills above 100m (330ft).

“Gusty winds, giving occasional blizzard conditions, and perhaps a few lightning strikes, may accompany some of the showers, posing as additional hazards,” the warning added.

Some A-roads in North Yorkshire were reported to be “gridlocked”, according to Shingi Mararike, Sky News’ North of England correspondent, but he added gritters are out to deal with the bad weather.

A car overturns on the A19 near Sunderland. Pic: PA
Image:
A car overturns on the A19 near Sunderland. Pic: PA

The Glenshane Pass in County Londonderry has been coated in snow. Pic: PA
Image:
The Glenshane Pass in County Londonderry has been coated in snow. Pic: PA

Snowy conditions near Skipsea in the the East Riding of Yorkshire. Pic: PA
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Snowy conditions near Skipsea in the the East Riding of Yorkshire. Pic: PA

Snow ploughs have been hard at work on the North York Moors and a thick coat of snow is covering the A169 between Pickering and Whitby.

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Dozens of schools have been closed in North Yorkshire and Scotland.

Amber warning for snow in parts of northeast England and south of Middlesbrough until 9pm on Thursday. Pic: Met Office
Image:
Amber warning for snow in parts of northeast England and south of Middlesbrough until 9pm on Thursday. Pic: Met Office

A number of yellow warnings are also in force for snow and/or ice across large parts of Britain.

In many of the warnings issued by the Met Office, there are concerns that where “showers persist and/or snow partially thaws and then refreezes overnight, this will bring a risk of ice”.

Weather warnings in the UK for snow and ice across various regions on Thursday (left) and ice on Friday (right). Pic: Met Office
Image:
Weather warnings in the UK for snow and ice across various regions on Thursday (left) and ice on Friday (right). Pic: Met Office

Jo Wheeler, Sky’s weather presenter, said clear skies will allow temperatures to tumble again as Thursday night approaches, “with an early and severe frost expected, and the associated risk of icy stretches on untreated roads and pavements”.

Coldest night so far

Overnight Wednesday into Thursday was the coldest of the season so far, according to the Met Office.

Temperatures dropped as low as -6.6C (20F) in Benson, Oxfordshire. There were two -6.4C (20F) temperatures recorded in Wales (in Sennybrigde) and in Scotland (Dundreggan).

While in Northern Ireland it fell to -2.8C (27F) in Altnahinch Filters.

Cold health alerts in force

As well as the one amber weather warning covering parts of the UK, there are two amber health alerts in place in three areas of England from the UK’s Health Security Agency.

An amber health alert is designed to prepare health services, including for the potential for a rise in deaths among the over-65s and people with health conditions.

The alerts are in effect in North East and North West England, along with the Yorkshire and the Humber region until 8am on 22 November.

Yellow cold-health alerts are in place for the rest of England and also expire at the same point.

Walk like a penguin

NHS Greater Glasgow and Clyde (NHSGGC) is recommending that people should walk like penguins to avoid dangerous slips and trips on icy surfaces.

The technique, which went viral in previous winters, is back for 2025 as part of the health board’s winter campaign.

Laura Halcrow, falls prevention lead at NHSGGC, said: “It might look funny, but waddling really works. A slip on ice can cause painful injuries and even hospital stays, especially for older people.”

Turning wet and windy

Sky’s weather presenter, Jo Wheeler, adds that the forecast is set to change this weekend.

“We’ll trade the cold sunshine and wintry showers for wet and windy conditions with rain turning heavy as it crosses the country on Saturday.”

“The British weather, fickle as always, looks like delivering a brief change to this milder westerly flow followed by an equally quick change back to a chilly northerly flow.”

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Liam McDermid: Man who used metal detector in hunt for hidden gun in Edinburgh during gang war jailed

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Liam McDermid: Man who used metal detector in hunt for hidden gun in Edinburgh during gang war jailed

A man who used a metal detector to try to find a hidden handgun has been jailed for more than six years.

Liam McDermid, 25, admitted his involvement in serious organised crime after being spotted by a police surveillance operation while searching for the firearm in undergrowth in Edinburgh.

This is the first prosecution under Police Scotland’s Operation Portaledge, which was launched in response to gang violence that blighted the east and west of the country earlier this year.

Judge Lord Arthurson told McDermid only a “significant custodial disposal” would be appropriate in the case.

In his sentencing statement, the judge said: “The public interest in suppressing and punishing such serious organised criminal activity is extremely high, particularly so when, as in this case, lethal weapons are involved.

“The citizens of Edinburgh have been understandably and indeed rightly concerned by the recent upsurge in such criminality in their communities.

“In these exceptional circumstances, there requires accordingly, in my view, to be some degree of exemplary component in respect of the sentence to be imposed upon you today.

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“This offence was planned and coordinated, and had clear links to serious and organised criminal activities.”

A court earlier heard how McDermid was observed by police surveillance officers getting a taxi to Edinburgh’s Roseburn Street on 5 June.

After visiting a shop, he was watched as he made his way to the Roseburn Path area of the Scottish capital.

Roseburn Path is a former railway line surrounded by dense shrubland and trees, and now serves as a popular walking and cycling route.

McDermid disappeared from view before emerging from the bushes with his face covered and with a metal detector.

He ditched the device after being unable to find the gun and was seen speaking on a black iPhone.

Officers swooped in to detain McDermid, and he was found to have gloves, a balaclava, and £320 in his possession.

Analysis of his mobile phone found he had carried out Google searches on how to use a metal detector, and text messages sent to another person included him saying he was going to “Gorgie to find that thing for him”.

The metal detector was recovered by officers, and a few days later, on 11 June, officers found the firearm and a magazine containing 10 rounds of 9mm bullets.

A magazine containing 9mm bullets was also recovered as part of Operation Portaledge. Pic: Crown Office
Image:
A magazine containing 9mm bullets was also recovered as part of Operation Portaledge. Pic: Crown Office

Lord Arthurson noted how the potentially lethal weapon was discovered during term time near to a nursery and junior buildings of a school.

McDermid last month pleaded guilty to a charge of being involved in serious organised crime. He returned to the High Court in Edinburgh for sentencing on Thursday.

Lord Arthurson highlighted the criminal’s lengthy record and noted how he was the subject of a restriction of liberty order (RLO) at the time of the gun incident.

Despite multiple convictions, up until now, he had never served a custodial sentence.

The judge noted the defendant’s history of cocaine misuse and adverse childhood experiences, adding: “You have a misplaced sense of loyalty to your criminal peers.”

McDermid, who was said to have expressed remorse for his offending, was jailed for six years and nine months.

Read more from Sky News:
Three charged over ‘missing ashes and fraud’ at ex-funeral directors
Ex-police officer given 37th life sentence over sex offences

More than 60 people have been arrested as part of Operation Portaledge, with the criminal activity including properties firebombed and shots fired in the nation’s streets.

Detective Chief Superintendent Dave Ferry said the recovery of the gun formed part of a “long and incredibly complex investigation”.

He added: “Liam McDermid is now facing the consequences of his actions.

“I hope this sentence sends a message to those involved in serious criminality that we remain determined to bring you to justice.”

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The Stone Roses bassist Gary ‘Mani’ Mounfield dies aged 63

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The Stone Roses bassist Gary 'Mani' Mounfield dies aged 63

The Stone Roses bassist Gary “Mani” Mounfield has died at the age of 63, his family has said.

Mani’s brother, Greg, said in a post on Facebook: “It is with the heaviest of hearts that I have to announce the sad passing of my brother.”

“RIP RKID,” he added.

Gary "Mani" Mounfield and his wife Imelda at the world premiere of "The Stone Roses : Made Of Stone" in 2013. Pic: Reuters
Image:
Gary “Mani” Mounfield and his wife Imelda at the world premiere of “The Stone Roses : Made Of Stone” in 2013. Pic: Reuters

Mr Mounfield joined the Manchester band in 1987 and played on both their albums, remaining with the group until their split in 1996.

He subsequently joined Primal Scream, and played with the Scottish outfit until 2011, when he left to rejoin the reuniting Roses.

His passing comes two years after the death of his wife, Imelda Mounfield, who was diagnosed with stage 4 bowel cancer in November 2020.

The couple had twin boys, born in 2012.

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Ian Brown, left, with Mani, right, performing on stage during their 2012 reunion concerts in Manchester. Pic: Reuters
Image:
Ian Brown, left, with Mani, right, performing on stage during their 2012 reunion concerts in Manchester. Pic: Reuters

The Stone Roses frontman Ian Brown shared a tribute online, writing on X: “REST IN PEACE MANi X.”

Now the band’s musical contemporaries are offering their condolences.

Oasis singer Liam Gallagher said he was “in total shock and absolutely devastated” by the news.

Also on X, Shaun Ryder of the Happy Mondays wrote: “RIP Mani – my heartfelt condolences to his twin boys and all of his family.”

His bandmate, Rowetta, added: “Back with your Imelda, Mani. Going to miss you so much.

“All my love to the boys, the family & all those who knew & loved him.”

The Charlatans’ frontman, Tim Burgess, shared a photo of himself with Mani.

“I shared this photo a week or so ago on Mani’s birthday,” he wrote.

“It never failed to bring a smile to my face – and that was exactly the same for the man himself.

“One of the absolute best in every way – such a beautiful friend.”

Pic: Robert Marquardt/ZUMA Press Wire/Shutterstock
Image:
Pic: Robert Marquardt/ZUMA Press Wire/Shutterstock

Echo & the Bunnymen vocalist Ian McCulloch said Mani was someone “who I have always loved and always will love, deeply and forever. Like a brother”.

He continued: “I am in shock to be honest. Please tell me I’m just having a bad, bad dream. My thoughts and feelings and Manilove to all of his family from me”.

Formed in 1983, The Stone Roses were a mainstay of the “Madchester” scene, which was known for its indie dance music; a blend of indie, acid house, psychedelia, and pop.

Their eponymous debut album of 1989 was a huge success, and was named the second greatest album of all time in a “Music of the Millennium” poll conducted by HMV, Channel 4, The Guardian, and Classic FM.

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