🔴 Homeowners will face mortgage strain as great as before 2008 crash, Bank of England warns
Around 20 per cent of homeowners on fixed-rate deals are due to refinance their mortgages in the next 12 months, the FPC said. According to the banking trade body UK Finance, 1.8 million homeowners’ deals are due to end in 2023.
The Bank is expected to raise its interest rate by up to 1 per cent next month, the eighth consecutive rise, pushing up mortgage prices yet again. Experts have warned that rocketing mortgage rates could collapse the market, after the average two-year fixed deal hit 6 per cent for the first time since 2008 this month.UK Finance has predicted that a rise in the Bank’s interest rate to 6 per cent, which many are forecasting could come in May, would add an estimated £445 a month to repayments on a typical £200,000 loan.
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