People between the ages of 18 and 34 who reside in London and the South East are most likely to be financially strapped.
According to an analysis by the Financial Conduct Authority, hundreds of thousands of mortgage holders could experience payment difficulties by the end of next year.
In addition to the households already behind on payments, the regulator estimates that 356,000 mortgage borrowers could encounter payment difficulties by the end of June 2024.
Persons in this cohort who are leaving a fixed-rate mortgage could end up. Paying an extra £340 per month on average.
While large, the numbers are down 214,000 from the 570,000 borrowers the FCA predicted would have trouble in September 2022.
The market anticipates that the Bank of England will raise interest rates by a lesser amount than previously anticipated. Wwhich is why the revision was made downward.
The Bank of England’s data supports the forecast. The Financial Stability Report published by the central bank in December predicted that “significant pressure” would be placed on households’ ability to pay their debts. It warned that the economic situation had worsened.
The FCA’s executive director of consumers and competition said, “But some may face difficulties.”
Do not wait until you are about to miss a payment before getting in contact if you have any concerns. Your credit score won’t be impacted by simply discussing your options with them “Sheldon Mills said.
In the working-age population, those between the ages of 18 and 34 are most likely to be “financially stretched.” People in London and the South East are also the most prone to be stretched.
The FCA states that being “financially stretched” does not necessarily mean borrowers will miss payments. Because some will be able to use savings, reduce expenditure, or increase incomes to help meet their mortgage payments.
