About 770,000 British families are at risk of defaulting on their mortgage
The UK Financial Conduct Authority (FCA) says that around 770,000 households are either at risk of defaulting on their mortgage payment over the next two years or already in arrears.
Authorities estimated that up to 570,000 more mortgage borrowers could be insolvent over the next two years, noting that by the end of June 2022, nearly 200,000 mortgages were insolvent.
Authorities said people at risk of underpayment are defined as paying more than 30% of their family’s total income into a mortgage, pointing out that “this does not necessarily mean that those at risk will miss a mortgage payment because some people be able to cut their spending or use the savings to help meet their mortgage obligations.”
The Office for National Statistics (ONS) said more than 1.4 million households faced the prospect of higher interest rates when they extended their fixed-rate mortgages this year.
Source: The Independent