UK homeowners: if your mortgage costs will rise soon, how are you preparing?
The Bank of England governor, Andrew Bailey, warned repeatedly this week against speculation that the base interest rate of currently 5.25% would be coming down soon.
About 55% of UK mortgages have been moved onto a higher interest rate since borrowing costs started to rise in December 2021 – although many homeowners on fixed mortgage deals are yet to be hit: another 5m mortgages are expected to be repriced by 2026.
Mortgage arrears in the UK are forecast to rise from 105,600 cases by the end of 2023 to 128,800 cases by the end of 2024.
We’d like to hear from UK homeowners whose fixed mortgage deals will expire next year how they are readying themselves for higher mortgage costs, and where the increase may leave them financially.
If you are expecting to move onto a higher interest rate when your mortgage renews next year, tell us what you are doing to be able to stem the additional monthly costs.