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Mortgage warning as chart shows number of individuals facing huge hike if rates of interest rise | Personal Finance | Finance

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Data shows a whole bunch of hundreds of Britons on fixed rate mortgages could see their payments soar next 12 months, if rates of interest are hiked even further. Figures from research group BuiltPlace indicate that the number of individuals whose fixed rate term is ending, is about to extend heading into 2023.

The chart indicates that the number of individuals ending their term is around 300,000 this quarter, and can increase over the following three quarters, peaking at around 375,000 within the second quarter of 2023.

Last week, the monetary policy committee (MPC) of the Bank of England raised rates of interest by 0.5 percent to 2.25 percent.

Analysts are predicting the MPC could have an emergency meeting this week to boost rates again, in efforts to curb the decline of pound sterling.

Michael Webb, managing director at Mortgage Republic, said the mortgage market has not panicked on the prospect of an emergency rates of interest hike, but a rise would have a huge effect.

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He said: “We didn’t see rates being pulled or any unexpected notifications of impending rate changes.

“Equally, our clients haven’t been coming to us frightened in regards to the prospect of an emergency rate rise.

“Partially, it is because the Bank of England base rate has been stable for thus long that we have now a complete generation that doesn’t realise an emergency meeting might be called, and rates increased sharply on the drop of a hat.

“Most expect the following increase on the scheduled November meeting, but it surely may come ahead of that, potentially this week.

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He said: “Mortgage rates have never been flashing so loudly on people’s radars. If rates were to rise again after an emergency meeting, it might result in a fair greater rush of activity within the mortgage market.

“It might also bring the acquisition market to a grinding halt because of fears of what could occur next.

“We’re in a highly fluid mortgage market now, with conditions changing by the day. People like certainty and there is not much of that right away.”

Anil Mistry, director at RNR Mortgage Solutions, said he had not yet received any updates about rates changing.

He said: “As of Monday morning, there have been no updates in my inbox from lenders about their rates changing.

“Nevertheless, this further highlights the urgency from all brokers where a client’s deal is ending in the following six months, to talk to their clients as soon as possible to have their mortgage and circumstances reviewed.

“Due to this fact, a latest rate might be secured prior to any further increases of the Bank of England and in turn the lenders increasing their rates.”

Graham Cox, director of Bristol-based Self Employed Mortgage Hub, said his self-employed clients were holding off buying as they expect property prices to drop, or because they lack confidence available in the market.

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