High
cost Fixed-rate mortgages
3/05/2007
Two or three years ago people who took
out a fixed-rate mortgage
witnessed their payments increase over £2,000.
Around September 2005 interest rates
averaged at 4.5 per cent, where in March 2004 interest rates were
at the lowest figures estimating nearly 4.0 per cent.
In 2005 a fixed-rate mortgage
price conflicted, looking at 2 year fixed-rate mortgages, a charge
small as 4.22 per cent was hit to consumers.
The Bank of England raised interest
rates to 5.25 per cent, also the lenders (SVR) standard variable
rates increased over 7 per cent.
This year online mortgage firm Mform.co.uk
evaluated that their were £100 billion of fixed-rate products
which were on its way out.
Francis Ghiloni, director of Mform
commented, "With further increases in the Bank of England
base rate being predicted, people coming to the end of fixed-rate
deals need to act now or see their mortgage
interest rates increase dramatically."
He added, "Customers whose
deals are running out should research the market now because there
will be fewer offers available when their deal expires."
