Hastings homeowner fears losing his home as mortgage costs rise

Nicholas Wilson from Hastings said he could lose his property after struggling to afford his mortgage payments, which have almost doubled since February.

The 65-year-old, who is awaiting a diagnosis for suspected cancer, said it is “impossible to even contemplate” the stress of losing his home and warned of a huge mental health impact on mortgage holders.

He told PA: “There’s going to be suicides as for some people that will be the only way out.

“I’m not threatening to myself, but the thought of packing up my things to sell my house in these circumstances is just horrible.

“I’ve been ill with depression for a long time and it’s just impossible for me to even contemplate losing my home.”

Nicholas Wilson has seen his mortgage payments almost double since February: credit - PA (Image: PA)

Mr Wilson, who has owned his home since 2008, currently receives an employment and support allowance due to being unable to work.

In February, his mortgage rate was 4.29 per cent with payments of £484.19, of which he paid £271.17 and received £213.01 through the Department for Work and Pensions.

However, from this month, his mortgage rate will be 5.74 per cent and he will need to make payments of £652.29 - almost doubling the amount Mr Wilson will need to pay.

• READ MORE: How much could mortgages go up due to forecast of interest rate rise?

Although he is due to start receiving his pension in March, which will be more than twice the amount of benefits he currently receives, he will then no longer receive help with his mortgage.

Mr Wilson said: “Trying to find somewhere to rent as somebody on benefits, and then potentially somebody undergoing treatment for cancer, I just can’t think about it.

“If I can find some part-time work next year, I might be able to keep my mortgage going.”

Interest rates could rise to six per cent, which would have a knock-on effect on mortgage rates for millions of homeowners

Chancellor Kwasi Kwarteng’s mini-budget earlier this month provoked days of chaos in financial markets and sparked fears of rocketing mortgage bills, with suggestions that the Bank of England may need to raise interest rates to as high as six per cent.

Meanwhile, as the government looks to curb spending, neither the Prime Minister nor the Chancellor has confirmed whether benefits would be increased in line with inflation.

Mr Wilson said the government’s response has been “tragic” and that it will not just be those on benefits who will struggle with mortgage payments.

Nicholas Wilson fears a 'bloodbath' of repossessions as mortgage costs rise - credit: PA (Image: PA)

He said: “Everybody that’s not on a fixed mortgage or whose fixed mortgage will end shortly are all going to be up against it.

“There are going to be so many repossessions, it will be a bloodbath.

“For me, it’s not an asset - it’s my home and I love it, but obviously if I can’t pay for it, then I will have to sell it.”

Mental health support can be found by contacting the Samaritans free of charge on 116 123 or emailing jo@samaritans.org.