The Joseph Rowntree Foundation (JRF) said an extra 120,000 households in the UK, the equivalent of 400,000 people, will be plunged into poverty when their current mortgage deal ends.
The analysis assumes that mortgage rates remain high and homeowners are forced to move on to an interest rate of 5.5%. With a current norm of 2% this change would mean spending 54% of their monthly income on housing costs, up from 38%. In cash terms this equates to an average increase of £250, from £610 a month to £860 a month.
People on low incomes with mortgages are already under extreme financial pressure as rising food, fuel and energy costs stretch household budgets to the limit. JRF says 750,000 households, or 2.4 million people, with a mortgage are already in poverty.
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