Thursday 20th December 2007
With an increasing number of people turning to fixed-rate mortgages to protect against rising interest rates, the coming year could be a tough one.
Paul Fletcher, director of the Repossessions Advice Centre, warns Britons emerging from their fixed rates in 2008 that they could be in for a shock.
But with the sub-prime lending crisis in the US continuing to take hold of the UK economy, he asserts that there may be few options available.
"Theyre struggling to remortgage, because the lenders have just stripped out all the criteria of what they would accept," he observes.
"A lot of these people just arent going to be able to get a new mortgage product, even with their existing lender."
The worst-case scenario calculated by the centre could see mortgage repayments rise by 65 per cent, Mr Fletcher adds.
Based on the figure, he anticipates a "large increase" in the number of repossessions which take place over the course of 2008.
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