Mform.co.uk reviews first time buyers mortgage deals

07/06/2007

Mform.co.uk have found out that nearly two million homeowners aged from 18-34 are going to find it difficult keeping up with their mortgage repayments due to unmanageable rise of interest rates.

If the Bank of England’s base rate were to increase once again to 0.25 per cent, this would leave 670,000 home owners in the struggle to make repayments.

Mform.co.uk feel home owners should think hard before taking out a mortgage deal.

Eamonn Rice, mfrom.co.uk chief stated that most homeowners are using their savings to fund a deposit for their home.

Mr Rice stated that homwowners should make sure their income fits comfortably with making repayments without getting ‘squeezed’.

During March 2007, first-time buyers took on a mortgage deal worth 9.96 per cent, this greater than 2006 however people’s income had risen by nearly 5.89 per cent which explained these figures.

The Mortgage Advice Bureau concluded that majority of home owners had switched to a fixed rate product to protect themselves from further interest rate rises, figures showed 8 in 10 mortgages were fixed rate products during March 2007.

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