Paul Day is among those who are set to see their mortgage rise.

The 62-year-old from Felixstowe says his mortgage will increase by £225 a month when his five-year fixed deal expires at the end of May.

Day, who is retired, currently pays £1,027 a month, but when his fixed rate of 1.89% ends, he will move on to his lender’s standard variable rate of 7.99%.

“It’s been a scary three months waiting for interest rates to go down and I’m getting closer and closer to my deadline, which is the 31st of May, and they’re not,” he says.

He is choosing to go on to a variable rate, because he doesn’t want to be “stuck” on another fixed one.

“I think things should settle down within the next six months, so it’s a gamble.

“I have got a pension to fall back on, but unfortunately when you’re taking money out of your pension it never gets put back.”