Debt management difficulties could be heightened for borrowers that fail to secure a good deal on their mortgage repayments when their fixed-rate arrangement runs out, suggest experts from London & County (L&C).
The financial services firm insists that in light of recent rises in the base rate of interest, some borrowers will face “significant jumps” in their rates of repayment if they do not get a good deal on their renewed mortgage arrangement.
James Cotton, mortgage specialist at L& C, said: “The payment shock for many borrowers will be substantial when their deals come an end and it’s important that they do all they can to minimise it.”
“Most importantly, plan ahead and don’t leave it until you’re already paying standard variable rate,” he added.
Earlier this year, the Consumer Credit Counselling Service warned that debt management problems will put homeowners “on the rack” financially throughout 2007.