Homeowners ‘set for higher costs’

Homeowners around the UK look set to face increased debt management problems in months to come as they look to secure a new mortgage deal, it has been claimed.

Around 1.4 million fixed-rate mortgage arrangements are expected to expire this year and for many people a new deal will mean higher monthly repayments.

The Council of Mortgage Lenders (CML) has suggested that many homeowners have already had to readjust their finances in order to take account of the “payment shock”, but many more are likely to face the same issues.

“Market conditions remain uncertain and borrowing costs are continuing to rise,” said Michael Coogan, director general of the CML.

“Borrowers need to plan ahead for higher monthly payments and look carefully at the options available to them,” he added.

Last week, price comparison firm moneysupermarket.com urged anyone who is worried about their ability to manage their finances to seek debt help links as soon as possible.