Mortgage costs to increase for borrowers on fixed-rates

A large number of UK borrowers could see their mortgage costs rise in 2008 as they come off their fixed-rate deals, it has been stated.

According to Joanna Elson, chief executive of the Money Advice Trust charity, between 2007 and 2008 there was a 16 per cent increase in the number of clients seeking mortgage advice from National Debtline.

Ms Elson advised borrowers to seek advice "as soon as possible" to help tackle their problems, adding that "there is always something that can be done".

She commented: "We fear that people really are starting to struggle with their mortgage payments as credit becomes more expensive to service. Our experience suggests that if you get into difficulty, seeking free independent advice as soon as possible is the best option to help you sort out your problems.

"There is always something that can be done and the earlier you seek advice the more options you will have."

The Council of Mortgage Lenders (CML) anticipates that higher mortgage costs will be faced by some 1.4 million borrowers this year.

Mortgages News posted on 03/04/2008 08:24:32