| The New Year promises to be considerably more | | | | repayment. The lower rates have higher fees, but |
| expensive for an estimated 12,000 homeowners as | | | | giving up some of your accrued equity to give yourself |
| the fixed-rate period of their mortgage expires and | | | | peace of mind knowing that you'll be able to afford |
| reverts to Standard Variable Rate (SVR), according to | | | | your mortgage into the foreseeable future is surely a |
| data released by online UK mortgage company John | | | | price worth paying. |
| Charcoal. | | | | "If you are thinking of going for a discount rate or |
| The difference that mortgage holders need to find | | | | tracker mortgage because you are gambling on |
| each month will come as quite a shock to most; a | | | | interest rates falling over the next couple of years, ask |
| typical £150,000, 25-year repayment mortgage | | | | yourself if you will be able to pay an increased amount |
| with a fixed-rate of 4.39% switching to SVR of 7.75% | | | | if interest rates go the other way, and rise." adds |
| will see payments rise from £824 per month to at | | | | Tucker. |
| least £1,132, an increase of £308 per month. | | | | If you are one of the 12,000 mortgage holders looking |
| That equates to needing to a rise in income of | | | | to remortgage before Christmas you need to do your |
| approximately £5,000 per year just to maintain | | | | maths to work out which is the best deal for you, not |
| the mortgage repayments. Add in council tax rises and | | | | just today but into the near future. An independent |
| other costs of living and the picture looks dire for those | | | | financial advisor could give you an impartial view on the |
| who haven't switched to a new fixed rate deal. | | | | merits of applicable products as well as help you out |
| And even if those whose deals are about to end can | | | | with the maths. |
| manage to find a new deal, they will find that today's | | | | But as UK mortgages become more expensive it is |
| fixed rate mortgage is at least full 2% higher than | | | | perhaps inevitable that some people will get into |
| when they first took out their mortgage. Lenders have | | | | difficulties attempting to repay their mortgage. |
| been re-pricing their deals ever since interest rates | | | | However, careful planning and extensive shopping |
| started rising and the key to getting a lower rate may | | | | around to compare mortgages long before the current |
| be to pay a higher arrangement fee. | | | | deal expires may give mortgage holders more chance |
| Katie Tucker, product specialist at Charcoal believes | | | | of getting a reasonable new deal, and avoid the shock |
| that policy is best. "What is vital," she says, "is that | | | | of the new rates. |
| borrowers remortgage to an affordable monthly | | | | |