Payment shock for borrowers as fixed rate terms end

Mortgagesforyou is warning home owners whose fixed rates will be expiring this September to act now before they hit their lenders’ SVR.

Mortgagesforyou is concerned that more than a million borrowers will face rises of up to 40% in their repayments when their well-priced two-year deals from 2005 come to and end this September.

In 2005 rates as low as 4.49% were agreed but now borrowers may be put on SVRs as high as 8%.

Bruce Thomson, managing director of mortgagesforyou, says: “It is a key time for the thousands of borrowers who opted for a fixed rate deal to take action to save themselves falling into financial difficulty later in the year due to increased monthly repayments.

“We cannot stress how important it is to act now rather than later as it can take weeks for lenders to complete their checks and issue a mortgage offer.

“Our specialist advisers can sit down with home owners and help them avoid the forecasted interest rate rise which is set to hit them in the third quarter of this year.”