356,000 mortgage borrowers could face payment difficulties by the end of June 2024 and amongst this group those rolling off a fixed rate deal could end up paying an additional £340 a month on average.
The figures relased this morning by the Financial Conduct Authority are down 214,000 from the 570,000 borrowers the FCA previously estimated in September last year due to changes in market expectations of the Bank of England base rate.
The authority says that that borrowers aged 18-34 are more likely to be financially stretched than the rest of the working age population but being stretched does not necessarily mean borrowers will miss payments as some will be able to use savings, reduce spending, or increase incomes to help meet their mortgage commitments.
Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:
‘Our research shows most people are keeping up with mortgage repayments, but some may face difficulties.
‘If you’re struggling to pay your mortgage, or are worried you might, you don’t need to manage alone. Your lender has a range of tools available to help. Get in touch as soon as you have concerns, don’t wait until you’re about to miss a payment before doing so. Just talking to them about your options won’t affect your credit rating.’
