Typical Mortgage Payments ‘Set To Double’

November 21, 2022

Average monthly interest repayments for UK mortgage holders are set to double next year, to £474 per month. That’s according to the Daily Mail, based on figures for a typical mortgage of £236,000. This has raised concerns that more homes will be repossessed, as mortgages soar to beyond the means of many people.

Household budgets are already under severe pressure from the cost-of-living crisis, and the UK economy is entering a prolonged period of recession. This may mean that unemployment rates will rise, at a time then wages are already failing to keep up with the soaring rate of inflation.

The alarming prediction is based on a forecast by the Office of Budget Responsibility (OBR), which has said that it expects the Bank of England to raise the base interest rate to 5% by 2023 0r 24. This will mean a corresponding rise, or prevent any drop, in mortgage rates, which are expected to reach average levels not seen since the financial crash of 2008/9.

The OBR said in a statement: ‘Due to the relatively large share of fixed-rate mortgages, higher rates on new mortgages take time to feed through to higher average mortgage rates on the stock of debt.’

Anyone who is looking for a new mortgage deal at the moment, or needs to renew their mortgage, is advised to contact an experienced mortgage broker. This is because they will have instant access to a comprehensive range of lenders, and will be able to navigate the current complexities of a fast-moving mortgage market.

This is especially true if you have a less than perfect credit record, or non-standard employment, such as a contractor, freelancer, small business owner, and so on. Adverse credit mortgage brokers will know which lenders are best placed to offer you a competitive deal that meets your needs.

Your home may be repossessed if you do not keep up with your mortgage repayments.

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