Payment Shock for Fixed Rate borrowers

Almost a quarter of homeowners whose fixed rate deal ended this year experienced financial difficulty meeting the higher rates of interest.

In a recent survey The Bank of England found that 22% of the 2,000 homeowners questioned admitted to finding it hard to meet the higher rates of interest once their fixed introductory interest rates reverted to their lender’s Standard Variable Rate (which is usually the most expensive).

Due to interest rates being raised 5 times throughout the past year, the average homeowner experienced an increase of £59 per month on their mortgage repayments.