A mortgage timebomb is poised to detonate. Since the Bank of England raised interest rates from 0.1 per cent to 4.5 per cent, research by the Resolution Foundation think-tank suggests that just a third of mortgage holders have been impacted. But that will not last.
Homeowners in the capital face a cataclysmic £1.4bn rise in repayments over the next three years as more and more come off their old fixed deals and are faced with vastly more expensive replacements. In the foreboding words of Resolution Foundation senior economist Simon Pittaway, “there is still a lot more pain to come.”
