Mortgage costs continue to rise says National Homebuyers
While interest rates were cut in December, mortgages are becoming more expensive, according to a financial comparison website.
[UKPRwire, Thu Jan 24 2008] Moneysupermarket's head of mortgages Louise Cuming said higher-risk mortgage borrowers in particular would feel the sting of higher costs.
About seventy per cent of new mortgages are fixed rate products, the website said.
Gordon Brown recently said mortgage lenders should cut interest on standard variable rate products if the base rate was reduced.
Ms Cuming said: "I shudder to think what would have happened to the average fixed-rate mortgage if the Bank of England hadn't cut rates."
At the beginning of December the fixed-rate average was 7.3 per cent and in January stands at 7.31 per cent.
Ms Cumming suggested the government would prefer it to be 7.05 per cent.
Fast property sale expert Julian King adds, "Those exiting their current fixed-rate mortgage deals will find the jump in mortgage payments too difficult to manage.
"Our City analysts are predicting repossessions to hit around 45,000 by the end of the year and the homeowner must act quickly to ensure they ar enot part of that statistic.
"National Homebuyers assists many homeowners with financial difficulties. Those not wanting to move should consider a Sell and Rent Back equity release option".
Mr King is a director of National Homebuyers, the UK's leading fast property sale firm, guaranteeing to make a formal cash offer to purchase any property in the UK.
In December research by the comparison website revealed that 28 per cent of lenders who said they would cut interest rates on products would not pass on the full 0.25 per cent.