Mortgage “ticking time bomb” as 3,300 fixed rate deals end every day

10 Oct 2022

EMBARGOED UNTIL 00.01 MONDAY 10 OCTOBER 2022

Mortgage “ticking time bomb”as 3,300 fixed rate deals end every day

168,000 mortgage borrowers to be hit with expensive new deal between today and Kwasi Kwarteng’s fiscal plan expected on 23 November
Lib Dems call on Chancellor to bring forward fiscal event and announce emergency support for homeowners on the brink

Almost 3,300 households are facing staggering hikes to their mortgage payments every day, new analysis by the Liberal Democrats has revealed.

It means that between today and the expected date of Kwasi Kwarteng’s fiscal plan on 23 November, around 168,000 more homeowners will have been stung by an expensive new mortgage deal. The analysis is based on figures from UK Finance showing 600,000 fixed rate mortgage deals are coming to an end in the second half of 2022.

Liberal Democrat Leader Ed Davey is demanding that the government take action this week to defuse the “mortgage ticking time bomb” facing homeowners around the country. He’s also calling on the Chancellor to bring forward the date of his plan and announce help for mortgage borrowers on the brink.

Liberal Democrat Leader Ed Davey said:

“Every day the Government fails to defuse this mortgage ticking time bomb, thousands more homeowners are being hit with staggering hikes to their bills.

“But Kwasi Kwarteng has shown he doesn’t get it or doesn’t care. He may see it as just a “little turbulence,” but for people facing a catastrophic increase to mortgage payments it could mean losing their homes.

“Waiting until 23rd November to act will be far too late for the thousands of families being tipped into mortgage misery. Conservative MPs must act now to help struggling mortgage borrowers on the brink.

“The Conservatives created this mortgage nightmare with their disastrous and out of touch Budget, now they need to take action to fix it.”

ENDS

Notes to Editors

Data from UK Finance has shown that 600,000 fixed rate mortgage deals are coming to an end in the second half of 2022, equivalent to an average of 3,296 a day.

Figures reported by UK Finance here. 1.8 million more fixed rate deals are set to expire next year.

The average mortgage borrower switching to a new deal will see their annual mortgage bill rise by £1,500, according to analysis from MoneyFacts reported here.