Consumers 'are facing a £1 billion mortgage hike'
Published On 17 March 2008
Many homeowners are at risk of defaulting on their mortgage payments when their fixed-rate deals come to an end in the coming months, a new study has suggested.Analysis from Mortgage Monitor found that 340,000 people took out fixed-rate mortgage deals in 2003, when the interest rates were at a very low level.
However, the researchers warned that these deals were set to expire and that people will face the prospect of paying back a total of £1.02 billion more when this happens.
Typically, the study suggested that the average homeowner who secured a fixed-rate deal in 2003 will see their monthly mortgage repayments rise by £250 a month.
Les Jacobs, the chairman of Mortgage Monitor, commented: "The massive bill that home owners face makes it more important than ever that they can find impartial advice and guidance to help them navigate the mortgage market.
"For many, finding the right deal will make the difference between making ends meet or facing financial strain or even repossession."
In the Budget last week, the chancellor said that he was keen to encourage consumers to opt for long-term fixed-rate mortgages.
