Evening Standard - Our mortgage went from £400 a month to over £2,000
What would you do if your outgoings shot up by £1,688 a month? That’s the question facing Tom and Yazmin Harvey, who are among a growing number of Londoners worried about covering the spiralling cost of their mortgage.
The couple told Claire Cohen from the Evening Standard “We were paying £428 a month but our fixed rate finished last year and we moved onto a variable,” says Tom, 36. “It went up to £1,500, then the next month it was £1,800. Now we’re paying £2,116 per month. We feel totally stuck.”
Aaron Strutt of London mortgage broker Trinity Financial told The Evening Standard “I thought the rate of withdrawals had slowed down, but they just keep popping up. “The constant changes really aren’t helping borrowers especially during a cost of living crisis. If you’ve got your eye on a certain deal, you just don’t know if it’s going to be there in a few days’ or not. People are worried.”
Aaron recommends that buyers keep their options open. “Shopping around obviously sounds incredibly boring, but the difference between the lenders at the minute is pretty huge.
“It’s worth seeing whether you qualify for one of the cheaper deals rather than just taking the rate hike. There are still some pretty decent mortgage rates available and some of the bigger banks are topping the best buy tables - but then we could wake up tomorrow and they’ve put their rates up.”
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