Millions of homeowners face re-mortgage if rates increase
Millions of homeowners face re-mortgage if rates increase.
The research, by moneysupermarket.com, found that if payments increased by £50, more than 2.6 million people would be pushed into re-mortgaging their homes. If the payments would become £100 then more than seven million people across the UK would be faced with large debt and re-mortgaging.
The results also showed that 53% of people with a mortgage were negatively affected by the last base rate rise in January.
Louise Cuming, of moneysupermarket.com, commented on the results of the survey: “The looming rate rise is of grave concern. We feel it could even be a half per cent rise which, according to the survey results will drive an alarming number of people into financial difficulty.
“It is alarming that people are still not budgeting for the increased mortgage repayments a further rate rise will bring. With so many saying they will be forced to remortgage if their monthly payments increase it is staggering more borrowers have not yet factored this in.”
She added, “Even more worrying is that people who are relying on being able to re-mortgage if their repayments rise may not be able to afford to do so due to the early redemption charges in place on many products. These people need to review their finances and budgeting immediately.”
If you need guidance on debt or debt solutions like re-mortaging or IVAs, contact Debt Free Direct for impartial advice.
Finance News posted on 29/10/2007 14:45:38
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