Mortgage Hike Alert: 100,000 Households to Face £240 Monthly Increase
As the General Election approaches, a staggering 100,000 households are bracing themselves for a £240 monthly mortgage hike. This alarming figure, revealed in research commissioned by the Liberal Democrats, translates to over 3,300 households per day facing increased mortgage payments.
The mortgage landscape has undergone significant changes over the past few years, with consecutive interest rate hikes by the Bank of England and the market response to former Prime Minister Liz Truss’ mini-Budget in 2022. The current base interest rate stands at 5.25%, with the average two-year fixed residential mortgage rate at 5.93%. Although this represents a drop from the July 2023 peak of 6.86%, it’s still a far cry from the 2.34% rate in December 2021.
“The mortgage charter sets out standards which lenders have to follow to support people struggling with their payments.” - Financial Conduct Authority (FCA)
The Government’s “mortgage charter” aims to provide a safety net for those struggling to pay their mortgages. Most UK lenders, including major ones, have signed up to the charter. If you’re facing difficulties with your mortgage payments, it’s essential to speak to your lender as soon as possible.
Mortgage payments can be a significant source of stress for homeowners.
The current mortgage climate is a far cry from the pre-pandemic era. With interest rates on the rise, it’s essential for homeowners to be proactive in managing their mortgage payments. If you’re struggling to pay your mortgage, don’t hesitate to reach out to your lender. Remember, communication is key in navigating these challenging times.
Seeking help from your lender can make all the difference in managing your mortgage payments.
As the General Election approaches, it’s crucial for policymakers to address the concerns of homeowners and provide adequate support during these uncertain times.
The General Election is just around the corner, and mortgage reform is a pressing issue that needs to be addressed.
In conclusion, the impending mortgage hike is a pressing concern that affects thousands of households. It’s essential for homeowners to stay informed, communicate with their lenders, and seek help when needed. As the country heads to the polls, let’s hope that policymakers will prioritize mortgage reform and provide much-needed relief to those struggling to make ends meet.
Mortgage reform is crucial in these uncertain times.
