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Large increase on mortgage repayments

4/05/2007

Homeowners and investors with buy-to-let mortgages are going towards high future mortgage payments, simply due to fixed-rate mortgages meeting its dead end.

Since 2006 the interest rate has stepped up slowly but surly leaving fixed-rate mortgages more popular. This isolates borrowers from base rate inflation.

Homeowners are reaching the end of fixed-rate deals, dreading, they will face high repayments following new deals as interest rates figures every year have increased. From mform.co.uk, Francis Ghiloni signals that higher payment is on its way.

"With further increases in the Bank of England base rate being predicted, people coming to the end of fixed-rate deals need to act now or see their mortgage interest rates increase dramatically."

He added, "Customers whose deals are running out should research the market now because there will be fewer offers available when their deal expires."

General investigation taken on by the London and Country stated that lenders are in a position where they are going to rise the interest rates on fixed-rate products, as each year this mortgage deal gets popular.