The Financial Conduct Authority (FCA) has warned an extra 356,000 mortgage borrowers could face payment difficulties by the end of June 2024, in addition to those who are already behind on repayments. This is a redaction on estimates made in September which suggested that an additional 570,000 homeowners could become financially stretched by the start of next summer.
The FCA defines mortgage borrowers as being financially stretched if more than 30 per cent of their gross household income is going towards mortgage payments and they are not currently in a payment shortfall. The new, lower estimate is due to changes in market expectations of the Bank of England base rate.
The FCA said that those rolling off a fixed-rate deal could end up paying an additional £340 a month on average. The regulator released the latest estimate as it confirmed finalised guidance, setting out the ways that mortgage lenders can help customers worried about or already struggling with their mortgage payments because of the rising cost of living.
