Mortgage rates horror as homeowners face £500 extra a month due to worse-than-expected inflation

The ONS had announced inflation had only fallen by 8.7 per cent in the year to April.

Despite dropping from its 10.1 per cent peak, the fall was somewhat lower than many expected.

More than 100,000 households who are about to remortgage as their fixed rate deals come to an end will subsequently face jumps in monthly repayments.

The situation has left many on fixed rate deals dreading what could come next.

Dermot O’Flynn, who lives in Leamington Spa with his wife and three children, told the i he was “too scared” to look at what his new fixed rate deal could rise to.

He recently received a letter from his bank that said his monthly repayments will double to £1,050 a month if he goes onto their variable rate.

O’Flynn’s parents are currently covering his mortgage costs as he was forced to give up work following his lung cancer diagnosis.

The 48-year-old’s wife also left the workforce to care for him.

O’Flynn, who is currently paying £510 per month and is on Universal Credit, has undergone chemotherapy.

He will soon receive brain radiotherapy but this will mean he cannot return to work for a few more months at least.

Persistently high inflation rate could lead the Bank of England to hike interest rates for the thirteenth consecutive time.

The Bank of England's anticipated interest rate increase would likely see the figure hit 4.75 per cent.

Such a move would see the rate hit its highest level since it was raised to five per cent amid the turmoil of the 2008 financial crash.

The base interest rate was as low as 0.1 per cent in late 2020 and early 2021.

The figure steadily rose with increments of 0.25 per cent to 4.5 per cent in May.