Further costs to face for struggling homeowners

Over recent months homeowners that are still paying off the mortgage loans on their properties have been hit three times with interest rate rises, with the Bank of England taking rates from four and a half percent last August to five and a quarter percent this January – and with further rises predicted in the imminent future.

However, it seems that it is not only interest rate rises that could be affecting homeowners, and those wishing to look for a better deal may be in for something of a shock.

The spate of interest rate rises over recent months has resulted in many homeowners making the decision to look for a better deal through remortgaging with another company in order to reduce outgoings and pay less interest.

The first problem arose several months ago, when a number of banks and lenders announced that they were going to have to suspend many of their fixed rate interest mortgages because of the huge number of people that were applying for these deals in a bid to avoid further repayment rises through future interest rate rises.

However, there could now be further rising costs to face for those still thinking about remortgaging in order to try and cut their mortgage repayments and get a better deal. According to recent data the cost of remortgaging has risen by eighteen and a half percent since the first interest rate hike enforced by the Bank of England last August.

According to Moneyexpert the cost of remortgaging has been rising along with interest rates, and the number of mortgage products with fees of under five hundred pounds has fallen from nearly three hundred and fifty to just over two hundred fifty.

The Chief Executive of Moneyexpert stated: 'You could incur exit and application fees just for moving provider so check before you commit. These can be hefty and may mean the difference between staying put and moving on.'

Tom Smith
10.02.07

More Related Articles

Home Mortgage Loan
Choosing the right mortgage is one of the most important decisions one makes while deciding finance. And the right decision can save you thousands of pounds. Know the facts before you move ahead with a home mortgage loan.
Which Mortgage Is Best For You?
Most people enjoy looking over real estate publications to decide which home they want. However, the high prices for homes today can be enough to discourage many people. This is especially true if you are looking at listings for homes in major cities like New York, Los Angeles, or San Francisco.
Sub Prime Lenders – Get A Mortgage Even With Bad Credit
Even if you have a bad credit rating, you may be pleasantly surprised to know that there is a whole sector catering specifically for you. There are brokers who specialise in clients with adverse credit, and can help you find a mortgage deal.

External Links: