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Rising mortgage costs could hit 630,000 by 2024 elections

Rising mortgage costs could hit 630,000 by 2024 elections
Christina Hoghton
Written By:
Christina Hoghton
Posted:
03/11/2023
Updated:
03/11/2023

The next six months could see over half a million borrowers stung by the surge in mortgage costs, according to The Labour Party.

The party has warned that 630,000 borrowers face a rise in their monthly mortgage costs before the May local elections next year, according to reports in The Guardian.

Labour’s analysis suggested more than 3,400 households would remortgage every day in the six months up to May 2024, based on figures from the Office for National Statistics.

These borrowers are likely to be facing much higher mortgage rates than they pay on their current deal, compounding the cost-of-living crisis with larger monthly repayments.

Further financial pain

Figures published this week revealed that mortgage arrears in the UK are already at their highest level since the financial crisis. And that’s before many borrowers have yet to renew their rate.

The Bank of England held the base rate at 5.25%, but higher refinance rates are already baked in for the vast majority of the 630,000 reaching the end of their current deal in the next six months.

Plus, there’s no guarantee that wider interest rates won’t rise further during that time.

Related: Repossession is a last resort: Five options if you’re struggling to meet mortgage payments