Advice being put together for homeowners that face rising repayments

According to figures from the Financial Services Authority one and a half million homeowners could be facing rising mortgage repayments over the coming months, with many cheap fixed rate deal due to come to the end of the fixed rate term.

Tight credit conditions means that many of the affected homeowners may be unable to remortgage to a cheaper deal, and this could mean that they have to try and cope with soaring repayments.

The Money Advice Trust Charity and the Council of Mortgage Lenders are now working together to try and put together advice for homeowners that find themselves in this position.

One official said: “The idea behind the initiative is to give free early advice to these borrowers coming off their fixed-rate deals and highlight key sources of independent and free confidential advice, such as adviceUK members, Citizens Advice Bureaux, Business Debtline, National Debtline and the Consumer Credit Counselling Service.”

A spokesperson from the Council of Mortgage Lenders said: “A large number of borrowers are likely to see their mortgage costs rise when their fixed-rate deals expire this year. We may be past the peak of the ‘payment shock’ this will produce, but market conditions remain uncertain and borrowing costs are continuing to rise. Borrowers need to plan ahead for higher monthly payments and look carefully at the options available to them. Anyone who thinks they might have a problem in paying their mortgage should talk to their lender as soon as possible. The earlier the borrower makes the lender aware of any potential payment problem, the wider the range of options for dealing with it.”