Homeowner fears for financial future and says interest rate rises are 'punitive'

11 May 2023 , 21:47

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Paul Afshar is anxious about the future (Image: COLLECT)

Paul Afshar is originally from Bradford and bought his shared ownership flat in Hackney, East London, in 2007.

The 39-year-old campaigner has been on a variable mortgage since that time and says after today he will be paying £376.26 a month for his mortgage and £865.48 for his rent and service charge combined.

He told The Mirror following a series of rises since September 2021, when the mortgage, which was £268.65 a month, has gone up by 40%, while the rent and service charge which was £772 has gone up by around 12%.

Paul is unable to remortgage, including moving on to a fixed-term, due to his one-bedroom flat being affected by the cladding scandal.

He said: “I feel anxious about the cost and that I am at the mercy of really large interest rate rises and because I can’t change my mortgage I am exposed to these. It feels really punitive.

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Bank of England boss Andrew Bailey (Getty Images)

“The rises don’t make sense to me because they aren’t going to stop me from spending on necessary items such as food and fuel.

“I’ve cut back on things such as going out and have changed to budget supermarkets. I’m trying to make those savings now so when the next interest rate rise happens it won’t hit as hard.

“I certainly didn’t expect these rises to have happened so frequently, it’s been a real shock.”

Natasha Wynarczyk