variable-rate mortgage

Foch said he’s handling some of these listings himself, and most seem to be cases where a variable-rate mortgage was used to finance an investment property whose interest payments are now greater than what can be charged in rent, forcing the borrower into default.

Homeowner Francesca Lemon knows the pain – repayments on her variable-rate mortgage have already risen by A$1,200 per month this year, forcing her back to work despite a long-term medical condition so that her family can keep up with debt.

Measures will also make it less costly for families to switch from variable-rate mortgage contracts to those with fixed rates.

If Truss and Kwarteng pursue their proposals — and there’s no indication they won’t — the central bank will be forced to continue raising interest rates, increasing the British government’s borrowing costs will keep climbing, as well as putting pressure on the finances of new home buyers and on variable-rate mortgage holders.

Homeowners with a variable-rate mortgage are also starting to feel the heat.