Thousands of households can get help with mortgage bills as 356,000 to fall behind on payments – how to get support

THOUSANDS of households can get help with mortgage bills as 356,000 are expected to fall behind on payments this summer.

Thousands are battling to pay their home loans amid spiralling interest rates.

The average two-year fixed rate in December 2021 was 2.34%, but by December 2022 it had reached 5.84%.

It followed the disastrous mini-Budget in September which caused mortgage rates to shoot up to a 14-year high.

At this point, experts were forecasting rates would rise to 6% in 2023.

This alarming forecast has been scaled back now.

Last month, the Bank of England raised its base rate from 3.5% to 4%, which is expected to peak at 4.5% before falling to 3.25% over the next three years.

But homeowners will still be hit, as when rates go up, banks usually increase how much they charge on loans and mortgage repayments.

New figures predict households will struggle to pay their way this year.

In June last year, 200,000 were in a payment shortfall, according to the Financial Conduct Authority.

But it is expected an extra 356,000 will be struggling to pay by June this year.

Borrowers on fixed-rate mortgages have been cushioned from the immediate impact of rising rates so far.

But those coming off a cheap fix will still face a hike to their monthly payments.

How to get help with your mortgage bill

As soon as you think you will have a problem with your monthly mortgage repayment - whether you can’t pay anything, can’t pay all of your monthly payment or can’t pay it on time - get in touch with your lender straight away.

They have certain schemes in place to help you if you're struggling.

You can ask your lender about the breathing space scheme if you're finding payments unaffordable.

Under the breathing space scheme, none of your debts will earn interest and no fees will be added for 60 days.

You’ll be protected from debt collectors and bailiffs.