As many as 46% of mortgage borrowers are worried about losing their home as mortgage rates spiral, a poll by the Liberal Democrats has revealed.
The party’s leader, Ed Davey, has called for action over the ‘mortgage ticking time bomb’ which the poll suggests has caused six in 10 borrowers to consider cutting down on food bills.
This research was released just after the average two-year fixed rate mortgage reached a 15-year high of 6.66%. But since the poll was published, data from Moneyfactscompare has revealed the typical rate for a two-year fix has climbed again to 6.70%.
The poll, by Savanta and commissioned by the Liberal Democrats, also found 45% had concerns they may have to borrow from a friend or family member to cover a bill, while 48% were worried about having to cancel a holiday.
Ed Davey said: “Millions of homeowners are worried sick about losing their home to soaring mortgage rates, all because of the chaos unleashed by this Conservative government.
“Rishi Sunak is refusing to lift a finger to help, instead treating homeowners like collateral damage.
“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.”
The Liberal Democrats have called for a Mortgage Protection Fund to offer targeted support of up to £300 a month to those facing the steepest rise in mortgage costs and in danger of losing their homes. This would be based on past schemes and be fully paid for by reversing Conservative tax cuts to big banks.
An emergency summit of mortgage brokers, organised by the Labour party, was due to take place today to address the difficulties many borrowers are facing.
Meanwhile, the Conservative government introduced the Mortgage Charter, where lenders who have signed up must provide borrowers with concerns about making repayments with options to reduce the financial burden.
