A rise in interest rates could leave 770,000 mortgage borrowers stuck with unaffordable deals, according to a new report.
The Resolution Foundation has warned that nine per cent of homeowners could be left as `mortgage prisoners`, because they wouldn`t be able to get better deals further down the line. These include sections of the self employed, people who took out an interest only deal or those who had very low equity in their property.
In all, the think-tank believes that more than two million out of the country`s 8.4 million mortgage borrowers will need to spend over a third of post-tax income on repayments if the base rate reaches three per cent by 2018, which is a very real prospect.
While there have been periods of interest rates going up in the past, this time round two-thirds (65 per cent) of people with mortgages have products that are linked to the Bank of England base rate, compared to just over a third (38 per cent) before the financial crisis.
If you`re worried that your mortgage could prove unaffordable following a rise in interest rates, you might want to act now to secure a better home loan deal. First Choice Finance can help you do just that as we`re a mortgage broker that has access to a large range of mortgage products.
Armed with some straight forward details from you, we`ll aim to find your most suitable deal from our panel to help you moving forward. We`ll present any quote to you on a no-obligation basis, so it won`t cost you a penny if you choose to look elsewhere.
Perhaps you could avoid becoming a mortgage prisoner by getting in touch today, head to firstchoicefinance.co.uk or give us a call on 0333 003 1505 on your mobile or 0800 298 3000 on a landline.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
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