Homeowners are drowning in mortgage debt

A GROWING number of homeowners are grappling with sky-high mortgage debt and today's stubborn interest rates could make things worse before they get better.

- By Harvey Jones

One in 10 now owe more than £300,000 on their mortgage, a number that’s almost doubled in seven years, rising to almost three in 10 in London, analysis from the Financial Conduct Authority (FCA) shows.

Worryingly, one in seven homeowners now owe at least four times their annual income on their mortgage.

Previous research from the Bank of England (BoE) has shown that three in 10 now carry mortgage debt into retirement.

Paul Matthews, senior director of risk at financial consultancy Broadstone, said as homeowners take on more mortgage debt household incomes have failed to keep pace. Simple mistakes can make it worse, he added:

“Many are failing to shop around for the best deal, which would cut repayments.”