Rishi Sunak has been warned homeowners face a “serious shock” as the Bank of England prepares to hike interest rates for the 13th time in a row, piling more pressure on struggling mortgage holders.
The Institute of Fiscal Studies (IFS) said 1.4m homeowners – half of whom are under 40 – will see a fifth of their disposable income wiped out by soaring mortgage rates, while trade body UK Finance said it expects 98,500 borrowers to fall behind on payments this year.
