Martin Lewis has issued a warning to anyone with a mortgage.
The Money Saving Expert founder has said that there will be a 'huge payment shock' coming for everyone with a mortgage and has dated exactly when it will fall on households. He has assured people that he is working with banks and the government to try to find some fixes before the worst of the crisis hits.
Speaking on his Martin Lewis Podcast, he told mortgage holders that they can expect the shock change in spring when interest rates peak and mortgage borrowers come off their previous fixed terms. He 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."
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The consumer champion added: “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."
But Martin hopes to have a fix in place before it happens. He said: "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.”
He added: “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.”
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