The number of homeowners who are struggling to pay their mortgage has jumped and will keep on rising, the Bank of England warned yesterday.Between January and March, lenders said there had been a surge in homeowners failing to find the money to make their loan repayments.
They told the Bank’s researchers that they expect the problem to get even worse in the coming months.
The Bank published a report yesterday that tightened the pressure even further as it warned of ‘the potential impact of increases’ in interest rates.
Interest rates have been frozen at an all-time low of 0.5 per cent for two years, but are expected to be increased imminently.
Nationwide, Britain’s biggest building society, warned yesterday of its own fears about ‘the squeeze on borrowers’.
Its figures show the average homeowner has a mortgage of £78,000 which costs £455 a month at an interest rate of 2.71 per cent.
But if interest rates return to their pre-crisis levels, the monthly payment of £455 will balloon to £621. Read More
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