Mortgage borrowers face gloomy picture

Mortgage borrowers across the UK are being faced with a gloomy set of circumstances as their fixed-rate arrangements come to end, it has been suggested.

According to a report from MoneyFacts.co.uk, the swap rates for financial institutions peaked several weeks ago but the interest levels on fixed-rate deals are continuing to rise.

Millions of families are struggling with mortgage-related debt management problems and those reaching the end of their fixed-rate arrangement are particularly likely to face financial difficulties this year.

In fact, it is estimated that a family whose three-year fixed-rate deal ends now would see their mortgage repayments increase by more than £150 per month even if they secured the same arrangement again.

Darren Cook, mortgage expert at MoneyFacts.co.uk, said: “There doesn’t appear to be any let-up in the misery for borrowers.”

A report from Moneysupermarket.com last week suggested that this month could be particularly painful for the thousands of Britons who are looking to remortgage.

By Giles Stevenson