Higher fixed rates offer Brits no relief from mortgage debt
Higher fixed rates offer Brits no relief from mortgage debt
Tuesday 8th July 2008
Moneyfacts said that despite the fall in swap rates - which mortgage lenders used to price their products - since June, the cost of fixed rate deals is continuing to rise.
Darren Cook, mortgage expert at the site, described the trend as "extremely worrying" and said that those coming to the end of a three-year fixed rate deal had most reason to be concerned.
He commented: "Borrowers coming to the end of a three-year fixed-rate deal, looking to fix for another three years, could see a £158 increase in their monthly repayments (on a £150,000 mortgage), equating to an additional £5,896 in true cost over the three years."
The research from Moneyfacts comes after Halifax recently announced that it is raising the cost of its fixed rate mortgages by an average of 0.1 per cent.
Higher mortgage costs are believed to have been the driving factor behind four million Britons using credit card debt to pay mortgage repayments or rent over the last 12 months, according to figures from moneysupermarket.com.
Debt1, official website of Byrom & Keeley - Experts in Debt Management
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