03-04-2008
Fool issues mortgage rate shock warning
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Fool.co.uk has issued a warning over the possibility of increased mortgage repayments for borrowers after the expiration of existing fixed-rate mortgage deals.
The organisation has confirmed that, out of every four homeowners, there will be three who experience significant increases in their mortgage repayments after their existing deal comes to a close.
It was also noted that five per cent of existing homeowners have plans to sell their property in favour of living in rented accommodation.
"Many homeowners will feel the full force of the credit crunch when their special-rate mortgage deals come to an end. For a lucky few, another good deal will be just around the corner," said David Kuo, head of personal finance at fool.co.uk, an organisation with a membership base of two million.
According to the organisation, borrowers will see mortgage interest rates increase to 6.3 per cent, from a previous level of 4.8 per cent.