Fixed rate mortgage crisis
A recent investigation by Mortgage Monitor showed that thousands of borrowers would struggle to keep up with repayments when current fixed deals come to an end, this will take effect towards the end of 2008.
The five-year fixed-rate deals were known as 'reliable' when it was introduced in 2003, however since that time, interest rates have rose by nearly 35 per cent. It gives an indication that many homeowners are due to see their repayments increase harshly and the results provided show that borrowers are becoming more concerned about the situation.
Nearly 23 per cent were questioned reporting that they were becoming more worried about their chances to keep up with mortgage payments, 14 per cent claimed to undergo insomnia as an effect of their concerns.
Les Jacobs, Mortgage Monitor chairman commented: "The massive bill that homeowners face makes it more important than ever that they can find impartial advice and guidance to help them navigate the mortgage market."
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