Quarter of households with mortgages at risk of arrears

A quarter of Britain's mortgage holders face missing their payments by the end of this year as interest rates continue to soar, analysis shows - with thousands told already that they could lose their homes. Some 1.6 million homeowners will come to the end of their fixed-rate deals this year, with an average hike of about £1,800 annually on their repayments as they move on to higher interest rates.

- HOLLY EVANS

Since the actions of Liz Truss as prime minister in 2022 sent rates spiralling, charities say pleas for financial assistance have tripled. The latest figures from the Ministry of Justice show that 5,182 repossession claims were made in England and Wales in the first quarter of this year, an increase of more than 40 per cent in just 18 months.

Jane Tully, of the Money Advice Trust, the charity behind National Debtline, said: “These are really challenging times for many mortgage holders as interest rates remain high and cost of living pressures continue. For those coming to the end of fixedrate deals, the financial shock will be significant as monthly repayments rise sharply. People often prioritise housing costs above other bills, and we are seeing the impact at National Debtline, with more mortgage holders now contacting us for help.”