Tuesday 19th of May 2009
Mortgage borrowers on tracker deals are in for a "shock" when these come to an end, an expert has noted.
With the Bank of England having lowered the base rate in recent months, many people will have seen the monthly amount they have to pay fall.
But as deals come to an end, consumers are likely to find they have to pay "dramatically higher" interest rates, according to broker at Click n go Mortgages Peter Cowell.
He explained that many will struggle to meet their repayments as they will have become accustomed to low charges.
It could mean that homeowners are faced with the need for debt solutions and some may choose to enter debt management plans, as these can allow borrowers to repay what they owe in a more affordable way.
Figures from Moneyfacts.co.uk have indicated that borrowers who are coming off tracker mortgages could see the amount they have to repay increase by nearly £7,000 over the next year.
