interest rate rise hits homeowners
The Bank of England base rates could be set to raise again in July.
Two years ago when the rates were at about 4.5% many homeowners remortgaged and opted for fixed rates, most of these will have been two year deals. These deals will be expiring soon and homeowners will definitely feel the pinch as interests rates are now at 5.5% and could be set to rise in July.
The four interest rate rises in the last two years will have hit homeowners on variable rate mortgages already. Homeowners with fixed rate deals ending soon with feel the force of the rate rises now. Whether they stay with their current mortgage lender or they switch and remortgage their monthly payments will now be higher.
How much higher would monthly payments be? A home owner with an interest only mortgage and a loan size of £160′000 would be paying about £600 per month on 4.5%. If they now had to pay at 5.75% their interest only payments would be approximately £766 per month. That is an increase of 28% on their monthly payments.
If you are having trouble meeting your monthly mortgage payments a sell and rent back solution could be for you. Please contact us to see how we can help.
Homeowners with variable rate mortgages could be set for hard times ahead as interest rates set by the Bank of more ...
I was in trouble with my mortgage and in danger of losing the house. I called the phone number on more ...