(1888PressRelease)
June 18, 2007 - As well as having to cope with higher mortgage costs as a result of recent interest rate rises, borrowers could also have to pay a charge to allow them the privilege of accessing the best fixed rate deals, the Mortgage Advice Bureau has warned.
In all, the independent mortgage advice service predicted that around a million mortgage holders will be out of pocket as a result of their fixed rate deals coming to an end this year.
Indeed, 178,000 Britons took out a two-year fixed rate deal between April and June 2005 alone - when the best fixed rate mortgage deals offered a rate of 4.49 per cent.
The most attractive two-year fixed rate product currently available carries a 4.99 per cent rate of interest, while the average standard variable rate (SVR) is 7.4 per cent.
"The assumption made by most commentators is that borrowers are gradually adjusting to rising interest rates. But some will face massive increases as a result switching their mortgages," Vince Cable, Liberal Democrat shadow chancellor, commented.
"The shock to heavily indebted borrowers is much more serious than the government or the Bank of England appears to believe."
Homeowners seriously concerned about the effects of moving off their fixed rate mortgage agreement could sell their properties to National Homebuyers and rent them back. Director Chris Newman says: "We are being inundated by people who cannot survive when their current mortgage agreement ends.
"Our Sell and Rent Back solution provides an immediate solution to prevent homeowners facing repossession or moving out of the home their have spent their income on over the last few years.
"Sell and Rent Back is an alternative to Equity Release, but easier.
"We purchase the property and agree a tenancy with the vendor that suits their needs."
National Homebuyers is the UK's leading Sell and Rent Back provider and can offer up to 100 per cent of each property purchased, or a rent-free period, depending on the homeowners requirements.
Further information is available at www.nationalhomebuyers.co.uk/sellandrentback.html.
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