Of these mortgage holders, younger borrowers have been hit with the biggest increases of £288 per month, compared to just £156 for those over 55
47% of UK mortgage holders have seen their mortgage payments rise by an average of £234 per month in the past 12 months, equating to £2,808 over the year, according to new research from Bluestone Mortgages.
Of these mortgage holders, younger borrowers have been hit with the biggest increases of £288 per month, compared to just £156 for those over 55.
For those who have seen their mortgage payments rise in the last year, more than half (52%) have said this is because their fixed rate mortgage came to an end. Two-fifths (40%) said their payments rose as they are on a SVR.
Amid these affordability challenges, mortgage holders have taken several steps to keep up with their monthly payments. 16% of mortgage holders have been overpaying while they were on a lower rate, 7% have switched to an interest-only deal, while a further 7% have asked their lender for a mortgage holiday. Mortgage holders also admitted to borrowing money from loved ones to keep up with their payments. Around a tenth (9%) have borrowed money from their family and 5% have borrowed from friends.
Steve Seal, CEO of Bluestone Mortgages, said: As inflationary pressures and increasing cost of living continue to squeeze the nation’s pockets, borrowers are no doubt feeling anxious about how they are going to balance increased mortgage payments with their everyday bills.
He added: However, there is a glimmer of hope on the horizon as following two successive rate holds, lenders are beginning to drop their rates, which will ease affordability pressures. For those still concerned, 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 require for their unique circumstances to make their homeownership dream a reality.