Ms Spencer said: “These customers could also be forced to bite the bullet and remortgage sooner fairly than later.”
But those with variable rate mortgages will probably be “seeing their payments increase immediately”, with even the smallest change to rates of interest “triggering one other rise of their biggest monthly outgoing.”
There’s understandably more concern for those on variable rate mortgages, who will see an increase consistent with rates of interest.
Sarah Thompson, Managing Director, LRG: “[Variable mortgage rates] may have been stress tested by brokers who would lend based on how an rate of interest rise will affect someone’s ability to repay.
“Homeowners shouldn’t worry about an rate of interest that’s out of their control.
“It should rise, however it isn’t and won’t come near the historic rises of many years ago. A reassessment of outgoings, particularly with the fee of all the pieces else rising will probably be preventive measure within the face of such insecurity.”
Is there a option to mitigate hard impact?
As damning as it would currently sound, there are measures you may take to remain afloat.
Ms Spencer said: “Lenders do have provisions in place to assist borrowers deal with economic struggles including job losses or reduced income. For instance, throughout the pandemic, lenders offered all customers the choice of a payment holiday, no matter their financial situation.
“Lenders aren’t any longer required to stress-test borrowers’ funds, nonetheless, lenders still hold the chance and so I think many will still be stress testing their borrowers.