Cost of servicing mortgages jumps in August

The annual increase in servicing a mortgage is up 0.7% so far with the average mortgage payment up from £502 to £512 in the last month. London has shown the largest regional increase up from 22.7% for July to 23.4% August. Andy Gray, head of mortgages for the Woolwich, says despite the increases the message to mortgage borrowers should be that the cost of a mortgage has stabilised, although he still expects occasional surges as seen in August. Gray says: "There are a number of reasons why there has been a jump and historically it tends to correct itself later in the year. Following...