Chancellor Rishi Sunak has told ministers that interest rates are expected to rise to 2.5% during the next 12 months, with homeowners seeing mortgage payments potentially increase by over £1,000 a year. He warned that a 1 percentage point increase on a typical mortgage would result in an extra £700 for those not on fixed-rate deals. Mr Sunak told one interviewer: "I want to be sure that... I don't make the problem worse. That's why I can't always do everything that people want, because it actually might make the situation worse, particularly with those on mortgages with rising interest rates."
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