Two in five homeowners concerned about mortgage repayments
The rising cost of living means two in five homeowners are concerned about their mortgage payments, with one in five not sure how they would make their next instalment.
According to Trussle, which surveyed 2,000 people, despite over a third of homeowners expressing concern over mortgage payments, only 10 per cent had investigated when they will be able to remortgage, and only 12 per cent had considered switching to a fixed term mortgage.
It claimed consumers faced a perfect storm which was pushing their finances to the brink. This include inflation at a 40-year high of 10 per cent, major energy price hikes with the energy price cap raised by 54 per cent, and the Bank of England having raised the base rate over six successive months to 1.25 per cent this month.
Trussle said the rate rises had added at least £1,313.16 per year to an average mortgage since December 2021.
Previous research from Trussle found those who drifted onto a Standard Variable Rate (SVR) following the end of their fixed rate period could save an average of £4,000 per year by remortgaging. It estimated 800,000 people are on SVRs across the UK.
The broker pointed out long-term fixed rates remain competitive compared to historic levels and are set to rise further over the coming year, with currently 0.45 per cent interest separating a two-year and 10-year fixed rate mortgage.
Amanda Aumonier, head of mortgage operations at Trussle, said: “Homeowners are facing a perfect storm of challenges that is pushing their finances to breaking point. This has left many feeling deeply worried as to how they can keep paying their monthly bills and make ends meet.
“However, we would urge people not to simply put their heads in the sand when it comes to their household finances. There are a range of measures from remortgaging to locking in a long term mortgage deal that can help give you greater stability and certainty.”