Take action early to avoid mortgage debt pitfalls, warns finance site
Take action early to avoid mortgage debt pitfalls, warns finance site
Tuesday 1st July 2008
Moneysupermarket.com was moved to issue its advice after a survey found that 51 per cent of homeowners whose mortgage deals end soon have not started to seek out a new one.
This lax approach makes it more likely that they will struggle to find a deal which does not result in their mortgage payment increasing significantly, according to Louise Cuming, head of mortgages at the site.
She said: "Anyone whose fixed rate deal is coming to an end should start planning at least three months before the product is due to finish.
"Banks are cherry picking customers, leaving many people unable to find affordable deals to service mortgages taken out in better times, when they were plentiful and easy to get hold of."
Moneysupermarket.com's poll also found that among 18 per cent of homeowners who have recently been looking for a new mortgage deal have struggled to find one they can afford or will be eligible for.
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