Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Homeowners face £3,000 rise in mortgage payments

by December 30, 2022
December 30, 2022
Homeowners face £3,000 rise in mortgage payments

Millions of homeowners refixing their mortgages next year face an average annual increase of £3,000 in repayments, according to research which warns that 2023 will bring additional financial hardship for borrowers.

A report by the Resolution Foundation think tank said that the two million homeowners who will have to refix their mortgages next year face the highest interest rates since 2008. An average fixed-rate repayment will increase from £750 a month to £1,000.

The UK economy is one of the most heavily exposed to high interest rates, which feed directly into higher mortgage rates. With the base interest rate at 3.5 per cent, the interest on an average two-year fixed mortgage with a loan-to-value ratio of 75 per cent has risen to 5.9 per cent, according to data from the Bank of England.

Two-year mortgage rates went above 6 per cent in the aftermath of the mini-budget in September and are up from 1.5 per cent a year ago. About a million households on floating-rate mortgages will be exposed to rising interest rates, with investors expecting the Bank of England to raise borrowing costs above 4 per cent by spring.

Torsten Bell, chief executive of the think tank, said that millions of homeowners would suffer “four-digit increases in their mortgage bills”, alongside an expected worst annual drop in disposable income on record as inflation erodes the value of earnings. He added that “2023 should see the back of double-digit inflation” but “it looks set to be a groundhog year for many families whose incomes look set to fall by just as much as they did in 2022. For living standards, things will get far worse in 2023 before they start to get better.”

Separate figures from PwC found that nearly nine million Britons will require an overdraft to cover their everyday spending needs and will struggle to repay outstanding loans, categorising them as “financially fragile”.

Analysis from PwC and Totally Money found that consumers were taking out more expensive loans to meet the rising cost of living. An average UK household owes a record £16,200 in unsecured debt, which can include loans for cars and credit cards, amounting to more than £400 billion unsecured debt across the economy.

The rate of credit growth exceeded more than £1,000 per household in 2022, with debt more expensive. In 2016, the average household owed £10,000 in unsecured debt, a record at the time.

“Unaffordable lending and borrowing can cause real harm to individuals and society, and vulnerable consumers can be disproportionately affected,” Isabelle Jenkins, leader of financial services at PwC, said.

Read more:
Homeowners face £3,000 rise in mortgage payments

0
FacebookTwitterGoogle +Pinterest
previous post
John Fetterman hasn’t given a single interview since election, amid questions about fitness
next post
New King Charles 50p coins could be worth £2 each ‘within weeks’

You may also like

Bahrain’s Mumtalakat Holding Company Assumes Full Control of...

March 22, 2024

Retail sales fall sharply in March as weak...

March 25, 2025

Single-use cutlery and plates to be banned in...

January 9, 2023

Wetherspoons announces another 11 pubs to close with...

January 27, 2023

Business owners share opinions and look to the...

July 9, 2024

Average British House Price Reaches Record High of...

May 20, 2024

5 Ways to Wear Kashmir Blue Sapphire Jewelry

November 7, 2022

Labour ditches £28bn green investment pledge

February 8, 2024

Its time to inject yourself into the thick...

September 16, 2022

More than half of 16-34 year olds have...

March 20, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • House of Lords AI summit at London Tech Week warns of ‘skills cliff edge’ threatening UK’s competitive future

      June 11, 2025
    • Tariff tensions force Spain’s food giants to seek markets beyond the US

      June 11, 2025
    • Sizewell C secures £14.2bn state boost – but energy savings won’t come for a decade

      June 11, 2025
    • Michelle Mone-linked PPE firm faces £122m high court battle with government

      June 11, 2025
    • Entrepreneur turned away from London Tech Week for bringing baby sparks industry backlash

      June 11, 2025
    • Global economy faces bleak outlook as World Bank warns of worst decade since 1960s

      June 11, 2025

    Categories

    • Business (8,183)
    • Investing (2,027)
    • Politics (15,591)
    • Stocks (3,141)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved