Individuals in Britain have been warned that a hike in mortgage rates could be on the horizon.
Michael Ossei, personal finance expert at uSwitch, has noted even though a reduction in insolvencies is welcome news, people need to be aware matters could be about to get worse before they get better.
Mr Ossei explained home loan increases are likely to accompany pay freezes in the next quarter.
It means any hope offered by positive insolvency figures could be overridden by less optimistic expectancies for the coming three months.
Mr Ossei observed ten mortgage providers have already stated their intentions to raise their rates, which will result in millions of homebuyers facing higher costs on a monthly basis.
He stated: “We have also seen interest-only mortgages, which can be a lifeline for those suffering a sudden drop in income, being pulled from the market.”
Homeowners may therefore wish to act sooner rather than later in a bid to protect themselves from an escalation in such fees by making extra savings where they can and also reducing their outgoings to essentials only.