Rising interest rates and higher bills mean almost one in two mortgage borrowers fear the could lose their home, according to research from the Liberal Democrats.
Its survey, conducted in June, showed 46% of adults with a mortgage said they were worried about losing their home because of unpaid bills.
The same survey found six out of 10 mortgage borrowers concerned they would have to reduce spending on food to meet higher housing costs, while 45% said they were worried they’d have to borrow from friends or family to ensure bills were paid. A further 48% were worried they would have to cancel a holiday.
The survey was taken shortly before data this week showed the cost of fixed-rate mortgages rising again, hitting a 15-year high of 6.66%.
The Liberal Democrats are calling for a Mortgage Protection Fund, offering targeted support of up to £300 a month to families facing the steepest rise in mortgage costs and in danger of losing their homes.
It said this would be based on past schemes and be paid for by reversing Conservative tax cuts to big banks.
Liberal Democrat leader Ed Davey says:“Millions of homeowners are worried about losing their home as a result of soaring mortgage rates.
“It’s clear we need targeted support to prevent families losing their homes through no fault of their own. There is a mortgage ticking time bomb about to go off and it cannot be ignored any longer.”
