More costly fixed rate mortgages squeezing debt-hit Brits
More costly fixed rate mortgages squeezing debt-hit Brits
Tuesday 17th June 2008
Recently, more and more homeowners are seeking fixed rate mortgages for the stability they offer in the face of economic uncertainty.
However, according to Moneyfacts.co.uk those who opt for the deals are now facing higher repayment rates, with the average charged on a two-year fix soaring to 6.75 per cent.
This is the highest rate recorded by the price comparison site for a decade.
Darren Cook, mortgage expert at Moneyfacts.co.uk, said: "Many borrowers prefer fixed rate deals, particularly in today's economic climate as they struggle to keep outgoings under control.
"However, many are likely to find this increased cost too much to bear. With the average two year variable rate standing at 6.66 per cent, many are finding they have little choice."
The higher cost of fixed rate deals comes as consumers are currently struggling with higher food and energy bills.
This squeeze on affordability has already led to a 4.3 per cent rise in the number individual voluntary arrangements (IVAs) in the first three months this year.
SimpleIVA - Expert and Confidential IVA advice.
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