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Rate rises causing 'mortgage misery'

The impact of recent interest rate hikes can be gauged by the rise in the number of monthly mortgage payments being missed, it has been claimed.

According to MoneyExpert.com, 460,000 mortgage payments have been skipped in the first half of the year, with 77,000 installments not being repaid each month.

The financial comparison website has said that the situation could get even worse for UK homeowners, with the Bank of England continuing to "pile on the pressure" and further interest rate rises expected.

"Missing a mortgage payment is a real signal of distress and anyone in such dire straits needs to address the issue as soon as possible," advised Sean Gardner, chief executive of MoneyExpert.com.

He added that people can deal with the situation by "looking to consolidate loans and exploring secured loans against the value of their home".

"Many of us have considerable equity in our homes which can be used," he stated.

Last week, the Council of Mortgage Lenders predicted that the two million mortgage-holders coming to the end of fixed-rate deals in the next 18 months will be hit particularly hard by the rise in interest rates.

See how much you could save with a debt consolidation loan from Lombard Direct.

09/07/2007 16:28:33

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