Fixed-rate mortgage bomb set to go off

Source: Elite Agent — 

Thousands of borrowers on fixed-interest home loans are facing an interest rate “cliff” and could be plunged into mortgage stress by the end of the year.

According to Finder, $29.8 billion worth of fixed-rate mortgages are due to expire by the end of 2022.

This rises to $158 billion by the end of 2023.

This could increase repayments by as much as $10,872 a year, on average.

Head of Consumer Research at Finder, Graham Cooke said the fixed interest ‘cliff’ is a scary prospect for a lot of borrowers.

“Hundreds of thousands of Aussies will be hard hit, with many facing mortgage stress if they aren’t adequately prepared,” Mr Cooke said.