Nearly half of UK mortgage holders have seen their mortgage payments soar by an average of £234 a month in the past 12 months, research from Bluestone Mortgages has revealed.
This equates to an increase of £2,808 in mortgage costs over the course of a full calendar year.
Of the 47 per cent who said they had experienced an increase, more than half said this was due to their fixed-rate mortgage coming to an end, while two-fifths said their payments had increased as they are on a Standard Variable Rate.
However, not all borrowers were impacted equally as younger borrowers were found to have been hit hardest.
The research reported that younger people with mortgages faced increases of £288 a month, compared to just £156 for those who are over 55 years old.
Remember that there is help at hand.Steve Seal, Bluestone MortgagesBluestone Mortgages chief executive Steve Seal said as inflationary pressures and rising cost of living rages on, borrowers were “no doubt” feeling anxious about how they were going to balance increased mortgage payments with their everyday bills.
Amid these affordability challenges, mortgage holders have taken a number of steps to keep up with their monthly payments, with 16 per cent admitting to overpaying while they were on a lower rate.
Additionally, 7 per cent switched to an interest-only deal and a further 7 per cent have asked their lender for a mortgage holiday.
Mortgage holders also admitted to borrowing money from loved ones to keep up with their payments, with 9 per cent reporting they had borrowed money from their family and 5 per cent borrowing from friends.
However, Seal also stated that there was a “glimmer of hope on the horizon”, pointing out that, following two consecutive rate holds, lenders are starting to drop their rates, which will ease affordability pressures.
He additionally provided advice for those who are concerned about their mortgage: “Remember that there is help at hand, whether that be opting for a product transfer, asking for a payment holiday or being signposted to specialist support.
“The earlier they engage, the sooner they will receive the tailored support they need for their unique circumstances to make their homeownership dream a reality.”
The survey findings come after the high-profile case of the MP who resigned his post as he could no longer afford his mortgage repayments, as FT Adviser reported yesterday (January 30).
tom.dunstan@ft.com
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