Nottingham homeowner fears mortgage could be 'unfeasible'

Matt Beeley said he was feeling under pressure about the predicted rises

A homeowner fears his monthly mortgage payments could become "unfeasible" if interest rates continue to rise.

Matt Beeley, 27, purchased the £200,000 one-bedroom apartment in Nottingham on a five-year fixed mortgage in 2017.

"It's not the news everybody wants to hear on top of the cost of living," said Mr Beeley, whose current deal is coming to an end.

The Bank of England has said it will "not hesitate" to hike interest rates if deemed necessary.

'Under pressure'

Mr Beeley, who works in sales, said he had bought the £200,000 one-bedroom apartment in Nottingham on a five-year fixed mortgage in 2017.

"I had been renting and I had my first job," he said. "I wanted to get on the market as soon as I could."

He said he had been expecting to move on to a variable rate but feared the prospect of interest rate rises, following the government's tax-cutting mini-budget on Friday, that this might become difficult.

"I'm paying approximately £720 a month, which is about 40% of my take-home salary.

"I am really concerned about the interest rates increasing," he said.

'Least worst option'

Mr Beeley said he believed interest rate rises could push his monthly payments to about £1,100 a month.

"When I started paying off my mortgage, interest rates were really low," he said.

"Around £1,100 a month seems really unfeasible for me, given all the other living expenses everyone has to contend with at the moment.

"At the moment, it's just myself relying on a single income at the moment."

Matt said he was really concerned about interest rate rises

He said he had about a month to find a new deal and was talking to his mortgage provider.

"I have been looking at staying on the fixed term - it's the least worst option," he said.

"The national situation is making me feel very under pressure."

Simon Bath, CEO of property technology company iPlace Global, has called on the government to offer more support to people with their mortgage deals.

"The government must ensure that support is given to all ends of the spectrum," he said.

The Treasury has been contacted for a comment.