Mortgage holders in the UK are facing a significant increase in their mortgage payments, with around three million households set to see their mortgage costs rise in the next two years, according to the Bank of England. This is due to the expiration of fixed-rate mortgage deals, which will result in higher monthly payments for many homeowners.
Mortgage rates on the rise
The Bank of England has warned that many renters are also struggling to cope with the higher cost of living and higher interest rates, with the proportion of people falling behind on rental payments rising to 16.5%. This is a result of landlords passing on the cost of higher mortgage interest rates to their tenants.
Rent increase affecting renters
However, the Bank of England has also stated that UK households and businesses are generally coping well with high interest rates, and that the overall share of households who are behind in paying their mortgages remains low by historical standards.
Mortgage payments set to increase
Martin Lewis, a money expert, has offered some tips to households on how to manage their mortgage payments. He suggests that overpaying on the mortgage could leave couples better off in the long run, but it is important for people to check their individual circumstances and how it will impact them long term before making any significant financial decisions.
Martin Lewis offers mortgage tips
The Bank of England has also highlighted some global vulnerabilities, including political uncertainty in the UK and abroad, that could impact the sector. However, it has stated that UK banks are still in a good position to assist businesses and households.
Bank of England warns of global vulnerabilities
In conclusion, mortgage holders in the UK are facing a significant increase in their mortgage payments, and renters are also struggling to cope with the higher cost of living and higher interest rates. However, the Bank of England has stated that UK households and businesses are generally coping well with high interest rates, and that UK banks are still in a good position to assist businesses and households.
Mortgage rates on the rise
