Mortgages - Fixed-rate Homeowners Struggling with Mortgage Costs - 17/03/2008

 
 
  A poll has found that at least a third of a million homeowners who took fixed-rate mortgages five years ago are finding it hard to keep repayments.

The survey by Mortgage Monitor said increasing number of homeowners, whose deals are due to expire soon, are concerned about meeting repayment when the fixed-rate mortgages expire and repayments rise. More than a quarter of a million five-year fixed rate mortgages were taken in 2003.

Another problem the homeowners may have to content with is how to find mortgage deals without higher repayments even if they choose to remortgage the properties, said the poll. Those who may wish to remain with their lenders, it added, may also have to put up with a 35 per cent rise in repayment as their loans switch to lenders’ standard variable rate.

The survey said almost a quarter of those coming off fixed rate mortgages admitted they were concerned about keeping up with repayment, and that five per cent had no idea how to meet the rising cost of their mortgages.

40 per cent said they would go to mortgage brokers to find a way of coping with the rising cost. But 17 per cent said they would stick with their existing lenders to see what deals they would offer.

Meanwhile, Prime Minister Gordon Brown has promised that the UK and other EU countries will lead the way in fighting global financial crisis, which is largely to blame for the current mortgage and credit crisis in the UK and elsewhere.

The Bank of England has provided an extra £5 billion for UK Banks to borrow to ease the problem.

   
 
     
 
 
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPATMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

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