British households with fixed-term mortgage deals will feel the impact of higher interest rates when their current deals expire by the end of next year, a Barclay’s chief has warned.
Barclay’s CEO CS Venkatakrishnan told the Wall Street Journal CEO Council that a higher portion of households’ earnings will be spent on mortgage payments, leading to a “huge income shock.”
“By our assumptions, for the median family income with the median mortgage, what they have paid as their mortgage or rental payments in the last two decades—the ’90s to 2020—was about 20 percent of their income. That is going to be about 28 percent to 30 percent of their income. So there is a huge income shock,” Venkatakrishnan said….