July could be a painful month for thousands of homeowners around the country as their fixed-rate mortgage deal comes to an end, it has been claimed.
According to Moneysupermarket.com, mortgage deals worth close to £30 billion will expire over the course of the month and the resulting debt management problems will put a serious strain on household finances.
A slight majority of people whose fixed-rate mortgage deal is coming to an end have been looking into their borrowing options but almost one in five will struggle to find an arrangement they can afford.
“Banks are cherry picking customers, leaving many people unable to find affordable deals to service mortgages taken out in better times, when they were plentiful and easy to get hold of,” said Louise Cuming, head of mortgages at Moneysupermarket.com.
A report from LV= last week suggested that an increasing number of British homeowners are aiming to avoid debt management problems by renovating their property rather than relocating.
By Dan Mather