Borrowers being told to face higher
repayments in the future
The Council of Mortgage
Lenders have stated that the Bank of England MPC choice to freeze
From CML’s recent survey, estimates show nearly 1.3 million
borrowers took out a fixed-rate mortgage during 2005, further
more 1.5 million during 2006.
Most borrowers will suffer high interest rates from 0.75 per
cent to 1.5 per cent. CML feel that borrowers will be uncapable
of managing higher payments.
CML Director Michael Coogan, commented: "While today's decision
not to raise rates is welcome, there is no cause for complacency.
More than two million borrowers over the next year and a half
will reach the end of fixed-rate deals, and will face the prospect
of higher mortgage payments.
"For most people, the scale of the increase will be manageable.
But it makes sense for borrowers whose fixed-rates will end soon
to start planning ahead now, and to recognise that their monthly
costs will be higher in the future. Anyone who thinks they may
face financial difficulties should talk to their lender at an
early stage to see what steps can be taken to improve their situation." he
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