03-04-2008
CML highlights mortgage cost increase for 2008
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The Council of Mortgage Lenders (CML) has reiterated a warning from the Financial Services Authority (FSA) that a number of mortgage borrowers are likely to face rising mortgage costs over the course of this year.
According to the CML, as fixed-rate mortgage deals come to a close over the course of 2008, the pain of higher mortgage costs is likely to be felt by a total of 1.4 million mortgage borrowers.
While interest rates are currently set at 5.25 per cent, this may change when the Bank of England's monetary policy committee announces its interest rate decision on April 10th.
"A large number of borrowers are likely to see their mortgage costs rise when their fixed-rate deals expire this year. We may be past the peak of the 'payment shock' this will produce, but market conditions remain uncertain and borrowing costs are continuing to rise," said Michael Coogan, director general of the CML.
Mr Coogan also noted that it is important for mortgage customers to notify their provider of any potential problems in respect of mortgage payments.