Consumers 'protecting themselves' against mortgage debt problems
Consumers 'protecting themselves' against mortgage debt problems
- Monday, 21 March 2011More consumers are trying to protect themselves against needing a
debt solution in the future by choosing a fixed-rate mortgage.
According to Ben Wilkie, editor of What Mortgage, mortgages will start costing more as interest rates will increase, so lots of people will be thinking about a fixed-rate deal to protect themselves.
He said: "If you have been on a fixed-rate where you have got used to paying one certain amount and then suddenly you switch on to a variable, then that could be a huge amount of difference."
Homeowners concerned about getting into
debt problems if their mortgage repayments increase should keep an eye on the market and think about a remortgage, Mr Wilkie added.
These comments were made after the Council of Mortgage Lenders revealed on March 18th that gross mortgage lending amounted to £9.5 billion in February.
Last week, the Monetary Policy Committee chose to keep interest rates at 0.5 per cent.

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