Citizens Advice SORT Group says banks must show understanding, as interest rates increase

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1 in 4 mortgage holders couldn’t afford to see mortgage payments rise by £100 a month

Banks must show understanding as interest rates increase, says Citizens Advice SORT, the parent company of the local Citizens Advice services in Stockport, Oldham, Rochdale and Trafford.

This comes as rates for fixed term mortgages have increased to their highest levels in 14 years.

Mortgage rates have been rising for months as central banks raise interest rates to try to get to grips with soaring inflation. Rates have increased sharply since September due to market fallout from the government's mini-budget, according to the BBC.

Recent research published by Citizens Advice shows that 1 in 4 mortgage holders couldn’t afford to see mortgage payments rise by £100 a month, whilst almost half (45%) would be unable to afford an increase of £250 a month.

As a result, the advice group says banks and landlords must be proactive and show understanding to those struggling with payments.

Steve Hughes, Chief Operating Officer at Citizens Advice SORT Group, said: "There is a generation of people who have never seen interest rates so high. This at a time when inflation is equally at an unprecedented level.

"Lots of people are seeing their fixed rate mortgages coming to an end and private landlords are passing on mortgage increases onto their tenants. Citizens Advice has recently shared research that 1 in 4 mortgage holders couldn’t afford to see mortgage payments rise by £100 a month, and we have seen clients who are moving back home because they can't afford their rent.

"We urge banks and landlords to show understanding to anyone struggling with payments. People might be worried to ask for help so it’s essential lenders proactively reach out to offer support."