Millions of homeowners across the UK face being ‘rate squashed’ after news that the average two-year fixed rate mortgage has risen to more than 6% and the average five-year fixed mortgage rate deal has just increased to 5.67%.
This is the highest it has been since December 2022.
These rises will be a huge issue for some people coming to the end of their current mortgage deal and seeking a new one. There is a real possibility that many will not be able to afford new mortgage payments.
This could lead to a whole new group of people at risk of becoming homeless.
Simon Pittaway, senior economist at the Resolution Foundation (a think tank working to improve the lives of people on low to middle incomes), said: ‘’The mortgage crunch is now on track to increase mortgage bills by £2,900, (a year) on average.”
Launchpad might not traditionally be seen as a resource for Reading homeowners, but these rate changes are very likely to change that.
It could also mean landlords decide to increase their rent, thus having a direct effect on those who rent and don’t even have a mortgage.
We want to remind everyone that you do not have to be in rented accommodation to visit us, and it does not matter if you are on benefits or in a full-time job. We are here to help everyone.
There are measures that can be put in place to help anyone facing housing crisis, whether it is finding accommodation, or offering support and advice about what to do next.
And with the expectation that hundreds of families are at risk of being rate squashed in Reading, we need your help.
We’ve prepared a poster to reach this newly at-risk group, which you can download here. Can you share this at work and anywhere else you can think of where it may be seen by people facing large mortgage rate increases?
It’s important they know that they’re not alone.
Anyone can visit our free drop-in service every Monday, Wednesday or Friday between 10am and 2pm at our offices in Merchants Place, just off Friar Street. No appointment is needed.