The UTV Podcast: Experts warn of mortgage timebomb as interest rates expected to rise

With interest rates rising to their highest levels in almost 15 years, experts are warning of a mortgage timebomb with each jump putting extraordinary pressure on many homeowners across the UK - with mortgage repayments rising with each move. 

In November 2021 for example, a two year fixed rate mortgage with a rate of 0.96% was available. Now the average rate on the same product has broken through 6%.

Given that mortgage repayments are usually the biggest outgoing for any household, it means budgets are being squeezed by hundreds of pounds a month, causing severe financial pain for homeowners.

With inflation stubbornly high, there are predictions of even more rate rises throughout 2023.

On the latest edition of the UTV Podcast, we hear from Garrett O’Hare, a residential property spokesman and board member for Royal Institute of Chartered Surveyors and Managing Director of estate agent Bradley NI.

He says Northern Ireland's housing market is still performing well, although the rest of the UK's is not - it's still an issue of demand outstripping supply.

Also joining us is Alice Gavin, a mortgage advisor and the owner of Alice Gavin Financial Solutions in Belfast.

She says first time buyers are not being affected so much by rising interest rates as they will look at the lay of the land and work within their budgets.

However, she says, existing homeowners are being the hardest hit.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.