London Homeowners Face £1.4 Billion "Mortgage Timebomb" As Interest Rates Rise, Warns Resolution Foundation
The Resolution Foundation has warned that London home owners face a £1.4 billion "mortgage ticking timebomb" over the next three years due to the Bank of England interest rate hikes.
The research by the think-tank estimates that over the next year total annual mortgage payments made by London homeowners will rise by about £900 million and by 2026 they will be £1.4 billion higher.
The report states that the popularity of fixed rate deals means that only about a third of the impact has been felt so far by mortgage holders and "there is still a lot more pain to come".
The report also suggests that poorer and younger mortgagors will experience the biggest squeeze from higher interest rates.
The report states that the popularity of fixed rate deals means that only about a third of the impact has been felt so far by mortgage holders and "there is still a lot more pain to come".
The report also suggests that poorer and younger mortgagors will experience the biggest squeeze from higher interest rates.
