Three million middle class homeowners are at risk of having their savings wiped out by the recent surge in mortgage costs, a leading think-tank has warned.

Analysis from the Institute for Fiscal Studies (IFS) suggests 2.9m middle income mortgage holders would exhaust their savings and be forced to ask for help to meet an unexpected expense of around £2,000.

The amount cited by the IFS is also almost the same as the annual jump in payments of £1,920 facing borrowers remortgaging today compared with rates offered at the start of May.

It suggests that millions of households will <a href="https://www.telegraph.co.uk/personal-banking/mortgages/remortgaging-guide-2023-interest-rates-calculator-2023/">struggle financially when they come to renew their deals,</a> leaving them to raid their savings, as well as borrow on a credit card, take out a personal loan, or ask friends and family to help.

Banks rapidly reprice their deals as market borrowing rates surge{ai:summary}<p>Middle class homeowners are at risk of using up their savings to pay for increased mortgage costs, warns a leading think-tank. The Institute for Fiscal Studies (IFS) states that around 2.9 million mortgage holders would have to seek assistance to meet an unexpected expense of £2,000, approximately the amount of the annual increase in payments for borrowers who remortgaged in May 2021 compared to May 2020. As households come to renew their deals, they may have to resort to borrowing on credit cards or personal loans or seeking financial aid from friends or family. #economy</p>

Three million homeowners risk spending all their savings on higher mortgage costs

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