The UK’s financial watchdog has published guidance for lenders to help homeowners struggling to keep up with their mortgage repayments due to the rising cost of living.
The Financial Conduct Authority (FCA) revealed that in addition to the households already behind on payments, 365,000 mortgage borrowers could face payment difficulties by the end of June next year.
The number of borrowers is down by 214,000 from the 570,000 people the regulator previously predicted in September last year following changes market expectations of the Bank of England base rate.
It said that amongst this group those rolling off a fixed rate deal could end up paying an additional £340 a month on average.
Further research from the authority reveals that borrowers aged 18-34 are more likely to be financially stretched than the rest of the working age population, with those living in London and the South East most likely to struggle.
“Our research shows most people are keeping up with mortgage repayments, but some may face difficulties,” said Sheldon Mills, executive director of consumers and competition, FCA.
He told homeowners struggling to pay their mortgage to approach their lender as banks have a “range of tools” available to help, calling on them to get in touch as soon as they have concerns.
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