CML to advise borrowers facing rate rises
Almost one and a half million people are to face big rises in their home loan repayments this year, the Council of Mortgage Lenders (CML) has warned.
These borrowers are facing the end of the fixed rate period on their loan deals before the end of 2008 - and will be forced to switch to a higher variable rate if they do not or cannot remortgage.
With this in mind, the CML is working with the Money Advice Trust charity to publish a guide advising consumers on their mortgage options - which the groups hope will help them to negotiate the issue.
Director general of the organisation Michael Coogan said: "A large number of borrowers are likely to see their mortgage costs rise when their fixed-rate deals expire this year…market conditions remain uncertain and borrowing costs are continuing to rise.
"Anyone who thinks they might have a problem in paying their mortgage should talk to their lender as soon as possible - the earlier the borrower makes the lender aware of any potential payment problem, the wider the range of options for dealing with it."
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