BBC Radio caller terrified of losing home
A man who works three jobs but still struggles to afford his soaring mortgage repayments said he feels like a “prisoner” trapped in his situation.
A caller named Dave phoned into BBC Radio 5 Live to share his story of how he is struggling to make ends meet as his costs have vastly increased.
He started on his mortgage 13 months ago with monthly repayments at £1,700 but they have now reached £2,850 with the previous interest rates increase.
He said he is dreading how much they will go up again with the latest base rate hike from the Bank of England this week, with the base rate increasing from 4.5 percent to five percent.
In the emotional call, he said the bosses at the Bank of England who set the base rate “have no real concept of real life”.
READ MORE Bank of England increases base interest rate to five percent[INTEREST RATES]
He said: “I’m just thinking what the next one will be. I’m keeping an eye out for the postman and hopefully he walks past my house. It’s just unsustainable, and they just don’t care.”
The man spoke about how he feels he has “no options” and is trapped where he is. He said: “You’re a prisoner in your own home. I don’t know what to say.
“You can’t remortgage. They stress-tested you for your initial figure, but if you went back to them now and said I want a mortgage paying £2,850 a month they’d look at what you earn and they’d laugh at you.
Pensioner tells young people to ‘stop whinging’ and work harder to pay bills[BILLS]
Martin Lewis urges action as mortgage holders could save thousands[MARTIN LEWIS]
Multiple banks boost rates on savings accounts above 5%[SAVINGS]
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
“Why do they think it’s acceptable to put it up to that level and think that you can survive, plus your tenancy, plus your council tax, plus food has gone up by about 20 percent?
“My food bill has probably gone up £40 or £50 a week, for four of us. I don’t know what the answer is.”
Following the base rate hike yesterday, Charlotte Harrison, CEO of Home Financing at Skipton Building Society, urged mortgage borrowers to reach out for support if they need it.
She said: “It is crucial as lenders we offer as much support as we can to ensure borrowers can remain secure in their own homes through this turbulent time.
“There is a lot of news about the impact the current climate is having on homeowners, but there is little in the news which highlights what support and help is available out there for them already.
“We want all homeowners to be aware of what help is available, and if they’re starting to get into difficulty to not shy away from the problem.
“The sooner a person gets into contact with their lender the more options they have available to them to help tackle the problem early.”
Skipton, like many mortgage providers, offers a range of support such as changing the loan to interest only, extending the term to reduce payments, or having temporary holidays.
For the latest personal finance news, follow us on Twitter at @ExpressMoney_.
Source: Read Full Article