Hundreds of thousands of mortgage holders could face payment difficulties by the end of June next year, according to analysis by the Financial Conduct Authority.

The regulator has said that, in addition to the households already behind on payments, 356,000 mortgage borrowers could face payment difficulties by the end of June 2024.

People in this cohort rolling off a fixed rate mortgage could end up paying an additional £340 a month on average.

While the numbers are high it’s a reduction of 214,000 from the 570,000 borrowers the FCA had, in September 2022, estimated would face difficulty.

The downward revision comes as the market expects the Bank of England to increase interest rates at a lower level than previously thought.

Data from the Bank of England echoes the outlook. The central bank’s Financial Stability Report, published in December, said “significant pressure” would be placed on the ability of households to meet their debts. It warned that economic conditions had deteriorated.

For now, most people are keeping up with mortgage payments, the executive director of consumers and competition at the FCA said, “but some may face difficulties”.

Former Shell chief executive Ben van Beurden takes home nearly £10m for 2022 as company profits from high energy prices

‘Our £100k nursery bill’: Children’s minister says no plans to extend free childcare as families struggle with costs

Cost of living crisis: Four million pet owners cutting back on weekly food shop to afford their animals

Please use Chrome browser for a more accessible video player

“Get in touch as soon as you have concerns, don’t wait until you’re about to miss a payment before doing so. Just talking to them about your options won’t affect your credit rating,” Sheldon Mills said.

Those most likely to be “financially stretched” in the working-age population are aged 18 to 34. People living in London and the South East are also most likely to be stretched.

Being “financially stretched” however, does not mean borrowers will miss payments as some will be able to use savings, reduce spending, or increase incomes to help meet their mortgage payments, the FCA says.

Related posts:

John Lewis warns of more store closures as pandemic deals hammer blow to sales Hammerson bids ‘au revoir’ to French joint ventures Virgin Active warns of collapse if creditors block restructuring Questions arise over Chancellor Rishi Sunak’s £2bn youth jobs scheme COVID staff shortages, foreign takeovers shake-up and an alcohol-free brewery £862m credit card splurge in November as consumers shopped early for Christmas Economy ‘surged higher’ in March but risk to growth intensifies as firms raise prices Energy giant to install 50,000 more electric vehicle charge points in UK by 2030 Disney’s financial results below expectations but streaming provides a shining light Inflation news is bad – but there is a glimmer of hope things might cool off Car dealer Pendragon gears up for £400m bid from top investor House prices fall for fourth month in row