Mortgage payment fears prompt watchdog warning to borrowers – ‘Don’t wait till it’s too late’
Younger homeowners and those living in London and the South-East are more likely to be financially stretched
March 9, 2023 9:20 pm(Updated 9:58 pm)
More than half a million households remain at risk of mortgage shortfall or are already behind with payments, the financial watchdog has warned.
New research shows that in addition to 200,000 households that are already in payment arrears, a further 356,000 mortgage borrowers may face payment difficulties by the end of June 2024, the Financial Conduct Authority (FCA) said.
The total includes many borrowers who are coming off fixed-rate deals and on to more expensive ones, who could pay an additional £340 a month on average, the FCA cautioned.
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It said that the number of households at risk is down 214,000 from an estimate of 570,000 in September last year. Improved expectations of Bank of England interest rate changes have eased the situation.
Younger borrowers aged 18 to 34 and those living in London and south-east England are more likely to be financially stretched than the rest of the working-age population, its research found.
It emphasised that being stretched did not mean borrowers will miss payments or risk their home being repossessed, as some will be able to use savings, reduce spending or increase incomes to help meet payments.
