” Many borrowers have factored into their finances an allowance for the increase in mortgage payments. The problem is that they do not know exactly how high these rates will rise and how long the increase will last for.
Furthermore, many home owners face a double mortgage hit, because many mortgage holders have taken out more expensive new deals since the rates rose in December 2021. This may come into effect when their current deal ends.”Nigel Holland.
- Homeowners face double mortgage hit as rates stay high for years.
- MORE than 800,000 homeowners face a double mortgage rate shock as the Bank of England warns interest rates will stay high for years.
- Mortgage holders who have taken out more expensive new deals since the Bank of England began increasing borrowing costs in December 2021 could be hit by another jump in housing costs again when their current deals expire.
- Analysts estimate that at least half of the 1.68m households who have remortgaged in the past year have taken out two-year fixes. These homeowners have had to move from rates of 1.5pc or 2pc onto deals at around 4pc .
- They are likely to see another jump in payments when their deals expire in 2024 and 2025 as the Bank warns interest rates could stay above 5pc until 2026.
- Rates could still be around at least 5.5pc at the end of 2024.