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.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
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