Warning to homeowners as big mortgage hike set to hit in next three months
ALMOST half a million homeowners will get a big mortgage hike in the next three months.
Their fixed-rate home loans will come to an end — meaning payments of £460 a month extra on a £200,000 loan.
Typical interest rates two years ago were 1.29 per cent but since then the Bank of England has raised its base borrowing level 14 times in a bid to curb inflation.
Analysis collated by household money-saving app Nous.co — which has added mortgages to its list of services — shows around 460,000 UK households face a hit.
Boss Greg Marsh said: “This time before Christmas will be difficult for those whose fixed deals end in December, January or February.
“Our advice would be to get advice from a mortgage advisor to ensure they get the right loan for their circumstances.”
Intensive care doctor Rosie Kalsi, 46, and husband Josh Dhaliwal, 50, face seeing their repayments shot up by a massive £1,500 a month to £4,500.
Josh said: “We are going to be watching every penny this Christmas.
“It’s scary. Our energy bill has already trebled. We were spending about £150 a month and now it’s closer to £450 a month.
“Then there’s the rising cost of food prices and fuel. I have this overwhelming feeling that I can’t do anything about it.”