Some mortgages could rise by up to 25%. People with annually reviewed mortgage rates should shop around, rather than accepting renewed terms, as it could mean that the consumer ends up paying an average of 2% more interest than necessary.
The 'Mortgage Broker' has said that payments on a £100,000 mortgage at 6.75%, would increase from £479 this year, to £565 in 2005.
Our view
Be careful when shopping around or deciding to swtich mortgage company. Watch out for any hidden penalties, redemption charges on your old mortgage and likewise, be careful of any hidden set up costs on any new one.