1.4 Million Households Facing Increased Mortgage Repayments in 2023

As the housing market continues to recover from the effects of the pandemic, a new report has revealed that 1.4 million households in the UK are facing increased mortgage repayments in 2023.

The report, released by the Council of Mortgage Lenders (CML), found that the number of households facing higher mortgage payments is likely to rise by 6% over the next three years. This is due to the fact that many homeowners have taken advantage of the government’s Covid-19 mortgage payment holiday scheme, which allowed them to defer their mortgage payments for up to six months.

The CML report also highlighted that the number of households in arrears is likely to increase over the next three years, with an estimated 400,000 households at risk of falling behind on their mortgage payments by 2023. This is due to the fact that many households have been financially impacted by the pandemic, with many losing their jobs or having their hours reduced.

The CML has urged homeowners to seek advice if they are struggling to make their mortgage payments, as there are a number of options available to them. These include extending the mortgage payment holiday, switching to an interest-only mortgage or taking out a loan to cover the shortfall.

The CML has also warned that homeowners should not take out a loan if they are unable to make their mortgage payments, as this could lead to further financial difficulties. They have urged homeowners to seek advice from a qualified financial advisor before making any decisions.

Overall, the CML’s report highlights the need for homeowners to be aware of their financial situation and seek advice if they are struggling to make their mortgage payments. With 1.4 million households facing increased mortgage repayments in 2023, it is important for homeowners to be prepared and take action now to ensure they can continue to meet their mortgage obligations.

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