Mortgage deal debt warning issued

Figures from Money Expert show that there were more than 2.3 million consumers from around the country who took out a fixed-rate arrangement in 2004-05 and all these people are vulnerable to heightened repayment demands.

Assessing the relevant mortgage deal data, Money Expert suggests that borrowers moving from a fixed-rate deal secured two or three years ago could face paying out an extra £200 or more if they move to a standard variable rate arrangement now.

Sean Gardner, chief executive of Money Expert, said: “Anyone moving off a fixed rate they took out in 2004 or 2005 is likely to see some increase in their monthly repayments as rates have moved up.

“However, there is a massive difference between the average fixed rates around now and lenders’ standard variable rates and anyone who fails to look for a new deal will feel the difference in their pocket.”

Earlier this year, the not-for-profit Consumer Credit Counselling Service suggested that mortgage borrowers are likely to be “on the rack” financially throughout 2007.

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