Homeowners face a Christmas mortgage crisis as they come off their current fixed-rate deals
Rate shock: More than 500,000 homeowners will roll off their current fixed-rate deal in November, December or January
Half a million households are at risk of a Christmas mortgage crisis as their home loan deals are set to expire at the most expensive time of year, consumer watchdog Which? has warned.
More than 500,000 homeowners will roll off their current fixed-rate deal in November, December or January and will be forced to remortgage at higher rates, according to figures from the Financial Conduct Authority.
A borrower who took out a two-year fixed mortgage in December 2021 could have secured an interest rate of below 2 per cent.
But rates have since spiralled, meaning that a homeowner who secured the same deal now would pay 6.66 per cent on average, according to rate scrutineer Moneyfacts Compare.
Experts predict that the Bank of England will vote to increase interest rates for the final time when it meets on Thursday.
Ele Clark, of consumer champion Which, says: ‘The rock-bottom interest rates homeowners enjoyed for more than a decade are firmly behind us.
‘It vital that lenders offer adequate and fully resourced customer support to help borrowers assess their options.’