Mortgage Shock Awaits UK Homebuyers

UK

2022/09/19

A huge cohort of purchasers opted for cheap two-year mortgages and are due to refinance by Sep 2023. But borrowing costs have risen to a multi-year-high, so new monthly housing payments may be ↑ 25%. The relief on the stamp-duty levy ran from Jul 2020-Sep 2021, and ~ 42% of borrowers in that period fixed for only 24-mo. It is said that BoE will ↑ key interest rate by 250 basis points to 4.25% by Mar 2023.