Thousands of UK homeowners will struggle to make their monthly payments as fixed rate mortgages come to an end and repayments rise by more than 35%.

According to research analysts, Mortgage Monitor. 340,000 five-year fixed rate mortgages taken out in 2003 are due to expire this year, resulting in a collective bill of £1.02 billion. The research found that one in twenty (5%) of those on fixed rates admit that they have absolutely no idea how they will meet the repayments when their current rate expires, this equates to nearly 70,000 people. This level of anxiety is affecting every area of their lives, with 14% of stressed fixed rate mortgage holders claiming they are suffering from insomnia.

However it is not all doom and gloom. The Council for Mortgage Lenders says the best way to deal with this is to take out a new fixed-rate or tracker mortgage, which should reduce monthly payments. “Unless they have an impaired credit history, borrowers coming to the end of five-year fixed-rate mortgages will not have reduced re-mortgaging opportunities,” explains Sarah Robson spokesperson for CML. “House prices have risen by 60% since 2003, allowing these borrowers to build up significant amounts of equity. It is also vital to realise that borrowers’ incomes should have risen in the five year period. On average their incomes should have increased by up to 20%. This should more than compensate for any increase in payments.”