Remortgage Rate Worries
Published / Last Updated on 26/11/2007
Rates ending
Around 250,000 homeowners in the United Kingdom are facing the end of their fixed rate mortgage term. To enable them to remortgage they will face an increase of around £100, maybe more, a month. In October 2005, the average fixed rate mortgage deal was secured at 4.96 per cent, compared with the current average rate of 5.79 per cent.
Our view
In addition, given the problems with ‘credit crunch’ and lenders having to tighten who how they lend, these tighter controls may see some consumers with poor credit ratings unable to secure a competitive remortgage, as lenders try to move away from high-risk lending.
Expect house price falls as well as interest rate falls.
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