Around 800,000 people are expected to remortgage next year
The Resolution Foundation, which is an independent think-tank focused on improving living standards for those on low to middle incomes, said it does not expect the average two-year mortgage deal to fall below 4.5% until the end of 2027.As a whole, annual repayments are on track to be £15.8bn a year higher by 2026 compared with prior to when the Bank started its rate-raising cycle in December 2021.
"That helps them through some difficult times over the months and years, but the mortgage costs them significantly more overall.'Living standards hit' In December the Bank of England said about four million UK households would face higher mortgage payments in 2023,But that included households on tracker and variable rate mortgages, and the prediction was made at a time when the Bank of England's base rate was lower.
But the organisation said the current mortgage crunch was less widespread than in previous shocks, which was "better news for the government". The Resolution Foundation's Simon Pittaway said: "Market expectations that interest rates are going to rise even higher, and stay higher for longer, are having a major effect on the mortgage market.
A Treasury spokesperson said the government knows it is "a concerning time for mortgage holders," but lenders were required to offer tailored support to those struggling with mortgages by the Financial Conduct Authority."Behind this though is global inflation, continuing to eat away at incomes around the world, which is why the single biggest thing we can do to help families is to halve the rate this year.
Belgique Dernières Nouvelles, Belgique Actualités
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