(1888PressRelease)
May 25, 2007 - Those who have been on a fixed rate deal for two to three years will be exposed to a significantly higher rate of interest, which many may struggle to cope with.
The Bank of England's monetary policy committee (MPC) has voted to increase interest rates four times in recent months - with 0.25 per cent hikes effectuated in each of August, November, January and, most recently, in May.
What's more, further rises are on the cards.
"The payment shock for many borrowers will be substantial when their deals to come an end and it's important that they do all they can to minimise it," commented James Cotton, mortgage specialist at L&C.
"The advice is simple: see what new deal your lender is willing to offer and shop around elsewhere.
"Most importantly, plan ahead and don’t leave it until you’re already paying standard variable rate."
Homeowners who do end up struggling financially could consider selling their homes to National Homebuyers and then renting them back. Director Chris Newman claims that people are finding alternatives to loans to subsidise their lifestyle.
"Those who fail to identify, understand or accept that there will be increasing rate rises over the next 12-months are putting themselves into their own disaster zone," he said.
"Not everyone has the luxury of changing mortgage plans and avoiding redemption penalties, which is why so many people are contacting National Homebuyers about our sell and rent back solution.
"We are prepared to arrange a bespoke solution for the homeowner which allows them to release the equity in their house, but not have to move home."
National Homebuyers are able to arrange a rent-free agreement or a purchase plan that allows the vendor to receive the full market rate for their property. They can be contacted
on 0870 979 8118
or by clicking www.nationalhomebuyers.co.uk/index.asp.
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