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One in three fear they’ll be unable to pay mortgage
Borrowers are already concerned about meeting their mortgage repayments, but interest rates could rise even further this week
A third of mortgage customers say rising rates mean they can’t afford their repayments, according to Butterfield Mortgages.
Among younger mortgage borrowers (18-34), the figure rises to 48%.
The lender said that borrowers fear unaffordable repayments due recent rate hikes. And the situation could get much worse if the Base Rate is hiked again by the Bank of England this week, as widely expected.
That would be the seventh consecutve rise in interest rates.
Biggest financial concern
In the survey of 2,000 adults, rising rates top many mortgage customers’ financial concerns – 44% said they are more worried about rates than inflation. A similar number (42%) are thinking about switching to a longer fixed-term mortgage to secure their payments.
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Over half of UK mortgage customers (53%) feel locked in with their current mortgage provider, while more than a quarter (27%) are actively shopping around for a new mortgage.
Alpa Bhakta, CEO of Butterfield Mortgages, said: “Borrowers are facing sharp shifts in the economic landscape.
“As lenders, we must do everything we can to help mortgage customers navigate the best possible financial path through these mounting challenges. This includes taking proactive steps towards anticipating borrowers’ evolving needs and offering greater flexibility with long-term and fixed rates, which may provide a sense of security over the potentially uncertain times ahead.”