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Brits 'should prepare for higher mortgage costs'

An estimated 1.4 million Britons are facing higher mortgage costs this year as their current fixed-rate home loan deals come to an end, according to the Financial Services Authority (FSA).

Working in conjunction with the Council of Mortgage Lenders (CML), the Money Advice Trust has produced a new leaflet with advice for borrowers and warns consumers to be prepared for higher mortgage costs in 2008.

The Fixed-rate Mortgages - Some early advice leaflet has been created to help those households looking for a new mortgage deal find the best rate available for them.

Consumers facing higher mortgage costs and shopping around for fixed-rate mortgage deals may consider taking out a personal loan to tide them over and help them to meet their monthly repayments.

Joanna Elson, Money Advice Trust chief executive, said: "Our experience suggests that if you do get into difficultly, seeking free independent advice as soon as possible is the best option to help you sort out your problems. There is always something that can be done and the earlier you seek advice the more options you will have."

Difficult economic conditions and the credit crunch are affecting the mortgage market and a large number of borrowers are seeing their home loan rates rise, as deals secured when interest rates were lower start to expire.

Figures from Fool.co.uk predict that as many as three out of four homeowners are facing higher mortgage rates over the next two years, as special-rate deals come to an end.

See how much you could save with a Lombard Direct personal loan

© Adfero Ltd

03/04/2008 12:29:39

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