Quarter of district’s households to face mortgage ‘bomb’ next year

Thousands of households across Bath and North East Somerset are set to face a mortgage ‘bomb’ next year, the West of England Metro Mayor Dan Norris has warned.

Analysis by the region’s Combined Authority has shown that there are around 5,100 households in the district, and 26,000 overall in the region, who have fixed-term mortgages concluding in the next 12 months. This is over 25% all homeowners in the local area.

Families coming off their low-rate fixed mortgage deals face a repayments rise of nearly £2,600, the analysis suggests, meaning a total ‘mortgage bomb’ hitting the region of around £67 million in the next year.

This comes as YouGov polling shows just under half of all homeowners with a mortgage say they will struggle to meet their payments in the next 12 months.

Mayor Norris, who has responsibility for regional economic development, is calling on ministers to step in to ensure that rising mortgage costs don’t result in a wave of repossessions, including considering proposals like reinstating mortgage payment holidays for locals.

Mr Norris said: “Thousands more Bath and NE Somerset households will see their mortgages skyrocket this year and next despite so many already struggling to cope during this frightening cost-of-living crisis.

“This isn’t small beer here – we are talking serious sums. £200 less a month in your pocket, on top of everything else, will hit locals hard.

“And it will have a much wider impact when it comes to the economy too as people will be going out and treating themselves much less.

“This mortgage penalty is another bitter blow for Bath and NE Somerset families, which is why I’m calling on ministers to take urgent steps to protect homeowners in the West through this crisis – this year and next.”