August 18, 2022

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Household panic as rising rates of interest might wipe out their financial savings: 'being held hostage'

The social researcher, 43, and her husband Paul, 42, dwell with their youngsters Ines, six, and Louis, eight, in Faversham, Kent.

They at the moment pay £1,718 a month for a 28-year mortgage on a four-bedroom new-build purchased for £485,000 in 2020.

Her three-year 2.08 per cent mounted deal will expire subsequent yr – and, with cheaper offers already vanishing from the mortgage market, the Josephs know they’re going through larger month-to-month funds.

Mrs Joseph mentioned: “I can’t sleep at evening for worrying about how I’ll pay the mortgage.

“The repayments are prone to rise to greater than half my take-home pay – or much more if rates of interest undergo the roof.

“I might depart my present deal and lock into a brand new seven-year one now that I can afford, however my present lenders are demanding £12,000 for me to modify.

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