The FCA warned those rolling off a fixed-rate mortgage deal could end up paying an extra £340 a month
The Financial Conduct Authority has warned an extra 356,000 mortgage borrowers could face payment difficulties by the end of June 2024, in addition to those who are already behind on repayments. This is a redaction on estimates made in September which suggested that an additional 570,000 homeowners could become financially stretched by the start of next summer.
The regulator expects firms to support people in financial difficulty and the guidance covers options such as extending the term of their mortgage or making reduced monthly payments for a temporary period. Top Money Stories Today The founder of MoneySavingExpert.com, said: "This FCA initiative is a thin sandwich - lots of bread but not much meat. It is primarily about clarifying guidance, which is needed, rather than any new measures.
"Thankfully, mortgage rates and interest rates haven't risen as high as they could have, so the need for urgent measures is less profound. Most who could afford to pay their mortgage then still can, even if it's tight. Yet it's also because getting any innovation through a body of lenders and regulators is tough.”
"If you're struggling to pay your mortgage, or are worried you might, you don't need to manage alone. Being stretched does not necessarily mean borrowers will miss payments as some will be able to use savings, reduce spending or increase incomes to help meet their mortgage commitments.
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