RSS FeedsHomeowners could face mortgage difficulties
18/03/2008
Fixed rate mortgages have been at the top off discussions again with the focus on the effects of fixed rate terms that are coming to an end in 2008.
Many mortgage owners could be facing a difficult situation as their current fixed rate mortgage expires. A study undertaken by Mortgage monitor has outlined that fixed rate mortgage owners could see a significant hike on their mortgage payments. The figures discussed suggest an increase of 35 per cent on monthly mortgage repayments.
The worrying news has put many people in a situation where they are now living in fear about how they will actually meet their monthly payments. Figures suggest that around 23 per cent of people fall into this category, whilst a further 5 per cent do not know how they will keep up with the payment.
In reaction to the study many feel the published data is on the excessive side and not realistic. Including Lending and Operations executive Steve Marks from Newcastle Building Society. Mr Marks said “"If you consider that mortgage rates were around 4.4 per cent five years ago and you can now find rates of just 5.5 percent, on a £150k mortgage this is an increase of just £138 per month. He further added "If we look at average earnings over the same period, you can see that monthly pay has increased by £358 per month."