The specialist lender said 47% of people it quizzed had seen an average of £234 extra added to their monthly bill. And, of this group, more than half said the reason for the increase was due to their fixed rate mortgage coming to an end.
This data comes as former Conservative MP, George Freeman, revealed he resigned from his ministerial role in November because, amongst other reasons, he could not manage the cost of his mortgage repayments.
Relinquishing his role as minister meant the mid-Norfolk MP could, subject to anti-corruption checks, take on a second job to help boost his income and meet his mortgage repayments.
But others struggling to meet their repayments found other ways to manage the costs. Bluestone’s research found 9% had borrowed from family and 5% had turned to friends.
Some borrowers took advantage of some of the practical solutions which have been put in place by lenders to help those struggling with repayments.
Bluestone found 7% had switched to an interest-only deal, while a further 7% asked their lender for a mortgage holiday.
Others had anticipated increased costs before being hit by higher repayments. Indeed, 16% of mortgage holders had been overpaying while they were on a lower rate, said Bluestone.
Younger borrowers were worst hit, experiencing increases of £288 per month, compared to £156 for those who were over 55 years old.
Whilst the majority (52%) said their payments had increased because their fixed-rate mortgage came to an end, another 40% had seen costs rise because they were on Standard Variable Rates (SVRs).
These are the lender’s revert rate, which borrowers automatically start paying if they do not remortgage when their deal expires.
Steve Seal, CEO of Bluestone Mortgages, said: “As inflationary pressures and rising cost of living continue to squeeze the nation’s pockets, borrowers are no doubt feeling anxious about how they are going to balance increased mortgage payments with their everyday bills.
“However, there is a glimmer of hope on the horizon as following two consecutive rate holds, lenders are starting to drop their rates, which will ease affordability pressures.
“For those still concerned, remember that there is help at hand, whether that be opting for a product transfer, asking for a payment holiday or being signposted to specialist support.
“The earlier they engage, the sooner they will receive the tailored support they need for their unique circumstances to make their homeownership dream a reality.”
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