'Mortgage prisoners' rate rise fear

Press Association
PA
PA

%VIRTUAL-SkimlinksPromo%Around one in 10 mortgage holders risk being "imprisoned" by borrowing deals likely to make their repayments unaffordable as interest rates rise over the next four years, according to an independent think-tank.

The study by the Resolution Foundation found that around 770,000 vulnerable households will suffer from a limited ability to switch to a better deal and face the likelihood of their monthly repayments eating up at least a third of their disposable income, which is known as being highly geared.