Monthly fixed mortgage payments could TREBLE for some households as dozens of lenders increase rates and pull cheapest deals
- Home owners could see monthly mortgage payments as much as treble
- Dozens of firms have increased their mortgage rates or scrapped cheap deals
Homeowners could face their monthly mortgage payments as much as treble in cost as dozens of lenders increase rates.
More than 30 firms have increased fixed-rate mortgages in recent days or scrapped the cheapest deals on offer.
On Thursday, Nationwide, HSBC and Barclays became the latest lenders to do so.
The latest move means that at least a third of companies which offer home loans have upped their prices.
Homeowners with mortgages taken out over the past several years when interest rates were low could be the hardest hit by the increase.
(Stock Image) More than 30 firms have increased fixed-rate mortgages in recent days or scrapped the cheapest deals on offer
(Stock Image) One couple described how their monthly mortgage payments increased by £1,300 every month in the last year
Loans taken out when rates were as low as 0.99 per cent in the expectation they would remain at similar levels could see monthly payments as much as double or treble, the i reported.
One couple described how their monthly mortgage payments increased by £1,300 every month in the last year.
Laura and Russell Gibson bought a cottage in Tunbridge Wells in 2018 for £500,000.
Although they used to pay just £1,738 a month for the home’s mortgage, the pair now face paying £3,000.
Laura said: ‘We’re currently making ends meet, but we don’t know for how long.’
She added: ‘We’re proud people so it’s embarrassing to say this is a stretch. We’ve had to make sacrifices to pay for the mortgage.
‘We’re going to continue to try and make ends meet for the next few months and see what happens. We are playing it month by month but are having regular conversations about selling although that is the last thing we want to do.’
According to research by the Liberal Democrats, the cost of re-mortgaging has increased by 38 per cent since 2019.
House owners in London who re-mortgaged in March could be paying £2,187 monthly, an increase of £615 since the last general election in December 2019.
Party Leader Ed Davey accused the government of a ‘shocking mismanagement’ of the housing market.
He said: ‘This is a hammer blow on all those who’ve worked hard, played by the rules, and are now struggling to pay their rent, their mortgage, their food bills.’