London tops list of UK areas with biggest increase in mortgage costs
Buying a home in the UK has become a far tougher ask than it was just a few years ago. Property prices have surged, interest rates have climbed, and monthly mortgage repayments now take a much bigger bite out of household budgets than they did in 2020. But have you ever wondered which parts of the country have seen mortgage costs rise the most over that period?
A new study by Mortgage Lane set out to answer exactly that, looking beyond headline house prices to focus on what buyers actually feel month to month. The study examined 58 major cities and large towns across the UK, comparing how average house prices and estimated mortgage repayments have changed between 2020 and 2025.
To do this, the study analysed average property prices for each location in both years, using publicly available UK housing market data, including Land Registry figures and national house price indices. Estimated monthly mortgage payments were then calculated for each city based on a consistent set of assumptions: a 20% deposit, a 30-year mortgage term, and typical five-year fixed mortgage rates. For 2020, an interest rate of 2.6% was used, reflecting the ultra-low borrowing costs of the time, while 2025 calculations assumed a rate of 4.9%, closer to what many buyers are currently facing.
By comparing the estimated monthly repayments from 2020 to those in 2025, researchers were able to calculate the cash increase homeowners would now be paying each month if buying the same “average” home. Cities were then ranked according to the size of that increase.
London tops the ranking by some distance. The capital saw the average house price rise from £385,295 in 2020 to £469,305 in 2025. As a result, the estimated monthly mortgage payment jumped from £1,635 to £1,992, an increase of £357 per month. That is a hefty extra outlay, even by London standards, and reflects both rising prices and higher interest rates colliding at once.
Meanwhile, Brighton ranks second. Average house prices climbed from £339,960 in 2020 to £413,960 in 2025, pushing estimated monthly mortgage payments up by £314, from £1,443 to £1,758. Bristol follows closely in third place, where buyers are now paying around £282 more per month, after average prices jumped from £255,576 to £322,067 over the five-year period.
Bradford and Cardiff round out the top five, ranking fourth and fifth respectively. Bradford saw monthly repayments rise by £238, while Cardiff recorded a £231 increase, reflecting strong demand in both cities. Winchester, Glasgow, Preston, Wolverhampton and Manchester round out the rest of the top ten, each seeing monthly mortgage costs rise by more than £200, underlining how widespread affordability pressures have become beyond the South East alone.
At the other end of the scale, Southend-on-Sea, Carlisle, York, Lincoln, Canterbury, Tunbridge Wells, Birmingham, Chester and Peterborough recorded the smallest increases in monthly mortgage payments, all coming in under £50. While prices have still risen in these areas, the combination of more modest growth and local market conditions has helped limit the impact on borrowers’ monthly bills.
Commenting on the findings, Joseph Lane, mortgage expert at Mortgage Lane, said the results show just how dramatically the cost of borrowing has changed in a short space of time.
“Even in areas where house price growth has been fairly steady rather than explosive, higher interest rates mean buyers are paying a lot more each month than they would have in 2020,” he explained.
He noted that ultra-low rates during the pandemic years masked the true cost of rising house prices. “Back then, cheap borrowing softened the blow of higher prices. Now that rates have normalised, the full impact is being felt, especially in expensive or high-demand cities.”
He added that location plays a huge role in how hard buyers are hit. “Cities with strong jobs markets, good transport links and lifestyle appeal tend to see prices rise faster, which means larger mortgages. When rates increase, those larger loans translate into much bigger monthly jumps.”
Looking ahead, Lane urged buyers to focus on affordability rather than headline prices alone. “It’s not just about what a home costs, but what it costs you every month. Understanding how mortgage rates and local price trends interact is key for anyone thinking about buying in today’s market.”
The table below ranks the top 20 UK areas with the biggest increase in monthly mortgage payments since 2020:
| Rank | Area | Average House Price 2025 (£) | Average House Price 2020 (£) | Estimated Monthly Mortgage Payment 2025 (£) | Estimated Monthly Mortgage Payment 2020 (£) | Increase in Monthly Payment (£) |
| 1 | London | £469,305.36 | £385,295.80 | £1,992.58 | £1,635.89 | £357 |
| 2 | Brighton | £413,960.00 | £339,960.00 | £1,757.60 | £1,443.41 | £314 |
| 3 | Bristol | £322,066.96 | £255,576.00 | £1,367.44 | £1,085.13 | £282 |
| 4 | Bradford | £345,680.00 | £289,700.00 | £1,467.69 | £1,230.01 | £238 |
| 5 | Cardiff | £224,000.00 | £169,557.80 | £951.06 | £719.91 | £231 |
| 6 | Winchester | £381,480.00 | £329,298.00 | £1,619.69 | £1,398.14 | £222 |
| 7 | Glasgow City | £210,537.64 | £160,411.00 | £893.90 | £681.08 | £213 |
| 8 | Preston | £156,233.36 | £106,592.00 | £663.34 | £452.57 | £211 |
| 9 | Wolverhampton | £180,108.00 | £130,689.00 | £764.71 | £554.88 | £210 |
| 10 | Manchester | £246,332.00 | £197,677.40 | £1,045.88 | £839.30 | £207 |
| 11 | Chichester | £283,154.10 | £235,008.00 | £1,202.22 | £997.80 | £204 |
| 12 | Salford | £174,653.00 | £129,378.00 | £741.54 | £549.31 | £192 |
| 13 | Southampton | £245,465.08 | £203,460.00 | £1,042.20 | £863.85 | £178 |
| 14 | Stirling | £174,464.36 | £132,862.00 | £740.74 | £564.11 | £177 |
| 15 | Portsmouth | £210,740.00 | £169,704.00 | £894.76 | £720.53 | £174 |
| 16 | Milton Keynes | £231,102.76 | £192,808.03 | £981.22 | £818.63 | £163 |
| 17 | Aberdeen City | £136,559.80 | £99,583.98 | £579.81 | £422.82 | £157 |
| 18 | Coventry | £179,880.00 | £143,219.80 | £763.74 | £608.08 | £156 |
| 19 | Gloucester | £185,200.00 | £151,970.00 | £786.32 | £645.24 | £141 |
| 20 | Newcastle upon Tyne | £146,400.00 | £146,026.00 | £621.59 | £483.43 | £138 |