Mortgage repayments have left people fearing that they will reach a point where we “just simply won’t have any more money”, amid soaring interest rates. Figures from Moneyfactscompare.co.uk showed the average two-year fixed-rate residential mortgage rate on the market jumped to 6.07% on Tuesday, from 6.01% on Monday.
Despite being on a repayment tracker mortgage, where the interest rate you pay is linked to the Bank of England’s base rate, Alistair Goodfellow, a business development manager, told the PA news agency that he decided not to go for a fixed-rate mortgage – which he has had in the past – because of the high rates. However, he added that he has an outstanding mortgage of £420,000 over the next 30 years, which has increased his repayments by between £600 and £700 a month.
“Now, it’s really hurting”, the 38-year-old who lives in Solihull in the West Midlands said. “We’ve had to cut back on everything – no eating out, we’re not buying clothes or really doing anything social anymore – we’re having to look after every single penny. And because we’re on a tracker, we’re expecting it to go up again – and energy costs have gone up considerably.”
