Nearly half a million mortgage borrowers face repayment increases

Nearly half a million mortgage borrowers in the UK are set to face sharp increases in their repayments as a wave of fixed-rate deals come to an end. According to the Financial Conduct Authority (FCA), 485,000 mortgage borrowers are on fixed deals due to expire in the final three months of 2023. By the end of this year, a record 1.5m people will have remortgaged. The FCA predicts a further spike in remortgages next spring, with over 180,000 homeowners coming off fixed-term rates in April. The value of outstanding mortgage balances in arrears has risen by 28% to £16.9bn, the highest total recorded since 2016. Eric Leenders, a managing director at UK Finance, said that lenders are concerned about forbearance to prevent an increase in repossessions. Ele Clark, at Which?, said: "With more than half a million fixed-rate deals ending in the next few months, it's vital that lenders are offering adequate and fully resourced customer support to help borrowers assess their options." 

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