Martin Lewis has issued homeowners with a 'huge payment shock' warning.
It comes as interest rate have increased, with lots of households facing increased mortgage payments. The Money Saving Expert has now explained the looming mortgage crush, that is set to impact everyone who owns their home.
However, the financial guru also explained that he is working closely with banks and the government in a bid to find some fixes before the worst of the crisis hits. Speaking on an episode of his money saving podcast, Martin Lewis told explained that there will be "huge mortgage shock" in the spring when interest rates are expected to peak and those currently on fixed rates come to the end of their deals, reports Yorkshire Live.
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The expert said: “Those who already have mortgages are gonna face ‘huge payment shock’ when their current mortgages end and they’re moved onto far higher rates.
“That’s likely to peak in the spring, when it’s thought, and nobody truly knows, interest rates will be at their high.
"We all know interest rates go up and mortgage costs go up. There are a huge number of people whose fixes will be ending next year, and whose fixes are ending right now and they will all be seeing huge rises."
The consumer hero then detailed when the meeting will be held as he tried to reassure worried borrowers.
“I had a meeting with Jeremy Hunt a few days before the autumn statement. In there, I talked about my great concern for the spring and the huge payment shock many people will face when their current mortgage deals come to an end and they have to move onto a new one
“I suggested we need to look at measures of forbearance and flexibility in order that we are able to make sure people get over that hump.
“Now this is not about manipulating the housing market, it’s not about any great huge changes.”
Martin explained himself that the chancellor and several bank bosses will come together for a mortgage summit to discuss possible ways to help people throughout the country.
The expert said that measures such as mortgage payments holidays, shifting to interest only, getting rid of of bureaucracy and scrapping stress tests at seven per cent could be possible.
He said: “I have a long list of well researched suggestions and we will see what we can do. I’m not promising revolution but I hope for some minor iterative change that might make things easier for people.”
Martin added: "Lenders don't want people in arrears or defaulting. That's expensive for them and they don't make money.
"They do have a vested interest in making it easier
"It's not quite bashing heads together, it's more getting everybody in the room to smooth out some of the humps in the process so as to allow people to smooth out their finances."
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