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HTML <html> <head> <title>Mortgage Bills Soar</title> </head> <body> <h1>Mortgage Bills Soar</h1> <div class="info">Author: <a href="author_1_84753.html">Abbi M Rouse</a></div><div class="body">It is estimated that up to a million homeowners who signed on for cheap mortgage deals two years ago will start to feel the pinch of the interest rate increases as their repayments will soar as much as a third.<br /> <br /> Experts claim that around a fifth of mortgage holders who switched to a fixed rate loan in 2005 took out a deal for two or three years which would mean that it is due to expire soon.<br /> <br /> "There is definitely a mood of caution in the air," says Abbi Rouse of online loan brokers, Interfinancial Limited. "We've seen a difference in the way that people apply for <a href="http://www.inter-financial.co.uk/secured-loans.html" >secured loans</a> in the past year: more home improvements, fewer holidays and weddings."<br /> <br /> Since 2005 there have been four interest rate increases and although borrowers are able to sign another fixed-rate deal they may find that the current deals are not on such favourable terms as the original <a href="http://www.inter-financial.co.uk/" >home loan</a>. These borrowers could find themselves paying hundreds of pounds more each month on their mortgage repayments once the fixed rate deal expires.<br /> <br /> Analysts claim that up to a million homeowners will see their rates dramatically jump over the next year, with many of the increases being too much for many homeowners to afford, especially those who are stretched as it is.<br /> <br /> "If you are a homeowner with a rate expiry due any time soon, you should look into Remortgaging sooner rather than later," says Rouse. "There can be redemption fees for ending a mortgage rate early, but if you are holding a high mortgage, the costs of taking on a new rate in a few months could be higher than the penalty. It's best to check."<br /> <br /> In 2005 the best fixed-rate deals were around 4.5%. Today offers are now at 5.5%, however it is predicted that the interest rates are due to rise again. A homeowner with a £300,000 repayment mortgage over 25 years will see their monthly repayments leap 10% or £174 a month. Those with an interest-only mortgage will see repayments jump 22% from £1,125 per month to £1,375. <br /> <br /> "These are high costs for homeowners," says Rouse. "Especially those who took out <a href="http://www.inter-financial.co.uk/personal-loans.html" >personal loans</a> last year thinking it was OK to borrow against their property. It's still safe to do so, but only if you have the buffer. Borrowing too much can send people spinning into the nightmare of missed payments and bad debt." <br /> <br /> With many households that are already struggling, the increase could possibly push them into arrears, which would mean that they then risk losing their home. Advisers recommend that homeowners who have signed a mortgage deal in 2005 and are now faced with the possibility of larger monthly repayments should budget for this increase and prepare themselves financially for the increase.<br /> <br /> <a href="http://www.inter-financial.co.uk/debt-consolidation-loans.html" >UK debt consolidation loan</a> clients know to come to the people they can trust: Interfinancial offer great deals for consumers seeking <a href="http://www.inter-financial.co.uk/secured-loans.html" >secured homeowner loans</a> and <a href="http://www.inter-financial.co.uk/bad-credit-loans.html" >bad credit loans</a>. Our friendly call centre staff will guide you through the process of getting the best cheap loan to fit your needs. Visit http://www.inter-financial.co.uk for more information.</div> <div class="source">Article Source: <a href="http://www.articlealley.com/article_178200_19.html">http://www.articlealley.com/article_178200_19.html</a></div> <div class="author"> <div class="authorOccupation"><strong>Occupation:</strong> Head of Marketing</div> <div class="authorBio">For excellent deals on camera memory, flash key drives and even memory for your cell phone, visit 7dayshop where you'll find the lowest prices in the UK for all your memory needs. 7dayshop's low prices even extend to specialist photographic film and paper, filters and lenses, tripods and storage. Why pay more for less? Commit the name to memory: 7dayshop.</div> <div class="authorUrl"><a href="http://www.7dayshop.com" target="_blank">http://www.7dayshop.com</a></div></author> </body> </html>
Text Mortgage Bills Soar Author: Abbi M Rouse It is estimated that up to a million homeowners who signed on for cheap mortgage deals two years ago will start to feel the pinch of the interest rate increases as their repayments will soar as much as a third. Experts claim that around a fifth of mortgage holders who switched to a fixed rate loan in 2005 took out a deal for two or three years which would mean that it is due to expire soon. "There is definitely a mood of caution in the air," says Abbi Rouse of online loan brokers, Interfinancial Limited. "We've seen a difference in the way that people apply for secured loans in the past year: more home improvements, fewer holidays and weddings." Since 2005 there have been four interest rate increases and although borrowers are able to sign another fixed-rate deal they may find that the current deals are not on such favourable terms as the original home loan. These borrowers could find themselves paying hundreds of pounds more each month on their mortgage repayments once the fixed rate deal expires. Analysts claim that up to a million homeowners will see their rates dramatically jump over the next year, with many of the increases being too much for many homeowners to afford, especially those who are stretched as it is. "If you are a homeowner with a rate expiry due any time soon, you should look into Remortgaging sooner rather than later," says Rouse. "There can be redemption fees for ending a mortgage rate early, but if you are holding a high mortgage, the costs of taking on a new rate in a few months could be higher than the penalty. It's best to check." In 2005 the best fixed-rate deals were around 4.5%. Today offers are now at 5.5%, however it is predicted that the interest rates are due to rise again. A homeowner with a £300,000 repayment mortgage over 25 years will see their monthly repayments leap 10% or £174 a month. Those with an interest-only mortgage will see repayments jump 22% from £1,125 per month to £1,375. "These are high costs for homeowners," says Rouse. "Especially those who took out personal loans last year thinking it was OK to borrow against their property. It's still safe to do so, but only if you have the buffer. Borrowing too much can send people spinning into the nightmare of missed payments and bad debt." With many households that are already struggling, the increase could possibly push them into arrears, which would mean that they then risk losing their home. Advisers recommend that homeowners who have signed a mortgage deal in 2005 and are now faced with the possibility of larger monthly repayments should budget for this increase and prepare themselves financially for the increase. UK debt consolidation loan clients know to come to the people they can trust: Interfinancial offer great deals for consumers seeking secured homeowner loans and bad credit loans. Our friendly call centre staff will guide you through the process of getting the best cheap loan to fit your needs. Visit http://www.inter-financial.co.uk for more information. Article Source: http://www.articlealley.com/article_178200_19.html About the Author: For excellent deals on camera memory, flash key drives and even memory for your cell phone, visit 7dayshop where you'll find the lowest prices in the UK for all your memory needs. 7dayshop's low prices even extend to specialist photographic film and paper, filters and lenses, tripods and storage. Why pay more for less? Commit the name to memory: 7dayshop. http://www.7dayshop.com
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