Across Europe, tens of thousands of people have seen their monthly bills rise. The rise in the cost of living is being felt in many countries, and the United Kingdom is one of many examples. With inflation hovering around 8% and interest rates the highest they have been in 15 years, more Britons are finding it difficult to pay their mortgage or rent.
One of the many examples is Sadie James, 61, who pays her bills every month but finds it increasingly difficult to pay them. She is a tenant, but she feels it in her skin The highest interest rate in the last 15 years.
“For me, if I get evicted now, I’ll be homeless, I can’t do it, it’ll bring me to my knees. Then they’ll put me in a hotel. I’m too old. It’s a nightmare for my life. I can’t, I can’t. So the main thing they have to pay is that it doesn’t matter my minute.
In the UK, inflation eased to 7.9% in JuneBut the benchmark interest rate is 5% and will reach 5.75% by the end of the year.
On an average, home loans are one-fifth of wages
Buying a home is increasingly difficult, and renting isn’t easy either.
“The reason the situation is so bad for renters is that, on average, mortgage holders spend a fifth of their income, or about 22% of their income, on housing costs. But in the private rented sector, a third of income is spent on housing costs. So, 33% is already spent on housing costs,” explains Mubin Haq, managing director of UK Fiund EQ.
In the United Kingdom, large home loans are offered at a fixed rate for two or five years.
By the end of 2024, the Bank of England estimates. 2.5 million credits to be renegotiated One million households will see their housing costs increase by almost 700 euros by 2026.
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