Mortgage calculator: is your home at risk from high interest rates?

Despite the Bank Rate sticking at 5.25pc, with many believing it has peaked at a lower rate than expected, hundreds of thousands of homeowners are expected to fall behind on mortgage payments this year as a toxic cocktail of higher interest rates, stretched incomes and job losses crystallises.

More than 200,000 households had already fallen behind on payments by the end of June 2022, according to the Financial Conduct Authority. Then in May this year, Which?, the consumer group, estimated that around 700,000 British households have missed a mortgage or rent payment in the past month. 

The City watchdog has warned a further 750,000 households are “at risk of payment shortfall” within the next two years, meaning their mortgage costs will climb to more than 30pc of their income.

Mortgage rates have soared in recent months, with average two-year fixed deals increasing to 6.58pc, according to Moneyfacts.

While some major lenders have started to cut rates, anyone who needs to remortgage will still find their monthly bills increasing by hundreds of pounds.

Use our calculator to work out if interest rate rises have put you at risk of falling behind on your mortgage payments.

Now read: ‘My mortgage has gone up £500 – and now I’m stuck with it for five years’

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This article is kept updated with the latest information.