![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/we-were-stuck-on-a-soaring-mortgage-rate-for-months-due-to-paperwork-delays/&media=https://uknews.evprotec.com/wp-content/uploads/2023/09/children-bear-4-tate-18-839361328.jpg&description=MORTGAGE TRAP Leah Milner Olivia Marshall Published : 22:49, 2 Sep 2023 WITH interest rates at their highest level for 15 years, millions of borrowers are feeling the squeeze. A third of homeowners are caught in a mortgage affordability trap as they struggle to cover housing costs, according to official figures. 1 Phil and Nicola Gibb were left on a soaring mortgage rate due to paperwork delays Credit: Neil Hope Many borrowers who took out their last mortgage deal two years ago would have been able to fix at below two per cent, but now face paying an average of 8.09 per cent if they lapse on to their lender's standard rate . For someone with a £150,000 loan that means a payment jump of £531 a month to more than £1,167. Struggling borrowers can seek help from their lenders and there are various ways they could temporarily lower payments. Leah Milner looks at how to ride out the mortgage storm and calculate the long-term impact . . . WHAT TO DO BEFORE YOUR DEAL ENDS IF your mortgage deal is ending in the next six months, start looking at your options as early as possible to avoid rolling on to a really high rate, warns Aaron Strutt of broker Trinity Financial. He says: 'Find out what rate your current lender is offering you as a new deal and then check out how this compares to other rates in the market.' See current rate comparison sites like moneyfactscompare.co.uk and moneysupermarket.com or search on unbiased.co.uk to find an independent mortgage adviser. Aaron says: 'Staying with your current lender normally means you don't have to go through a new valuation on your home or extra income checks, so it can save on hassle and costs if the rates are similar to what rivals are offering. 'Lenders will often let you secure a new mortgage offer up to six months in advance. "As rates are forecast to rise further before hopefully dropping next year, this could be a good way of hedging your bets.' FIX OR TRACKER? FIXED rate mortgages offer the peace of mind of knowing exact){kind=link}
WITH interest rates at their highest level for 15 years, millions of borrowers are feeling the squeeze.
A third of homeowners are caught in a mortgage affordability trap as they struggle to cover housing costs, according to official figures.
Many borrowers who took out their last mortgage deal two years ago would have been able to fix at below two per cent, but now face paying an average of 8.09 per cent if they lapse on to their lender’s standard rate.
For someone with a £150,000 loan that means a payment jump of £531 a month to more than £1,167.
Struggling borrowers can seek help from their lenders and there are various ways they could temporarily lower payments.