A new study by Barrows and Forrester reveals that 30% of homeowners are struggling to cover the increased cost of borrowing, as the majority have seen their monthly mortgage payments rise.
The survey, which included 2,304 homeowners with mortgages, found that 57% have experienced an increase in their monthly mortgage costs since interest rates began to rise in December 2021.
However, only a small proportion are considering selling their homes due to higher monthly mortgage repayments, and many are hopeful that the end of upward interest rate growth is near.
James Forrester, managing director of Barrows and Forrester, said: “We’ve seen interest rates rise consistently now for over a year and this will have put inevitable pressure on many homeowners who will have seen the cost of their mortgage increase as a result.
“The silver lining is that only a relatively small proportion are now struggling with the cost of their monthly mortgage repayments and an even smaller number are considering selling their home as a result.
“Of course, this will come as little comfort to those who are struggling and in this instance, you should speak to your lender sooner rather than later. They will do what they can to help ensure you are able to maintain your payments and avoid defaulting on your mortgage.
“The good news is that the market has stood strong in the face of recent mortgage market turbulence and so while the cost of borrowing may have climbed, house prices haven’t fallen drastically as many predicted. There’s hope that we may have also seen the end to upward interest rate growth and so things should start to improve over the year ahead.”
