Sign up for a new mortgage

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by Gill Montia

The figures for missed monthly mortgage repayments have been deteriorating over the past 12 months, when homeowners were defaulting on their mortgages at a rate of 36,000 a month according to The Council of Mortgage Lenders

The fifth interest rate rise in less than 12 months will affect homeowners - and according to experts, this could worsen.
Interest rates were increased from 5.5% to 5.75% last week - a level not seen since March 2001. Analysts forecast that interest rates will reach 6% before the end of the year.

mform.com, the independent mortgage search website, calculate that around eight million people are struggling to meet their mortgage payments each month and National Debtline, the national telephone helpline for people with debt problems, has been inundated with calls from people worrying about debt.

The advice is to be calm and for those with extreme debt problems, they should speak to their lender. For those with mortgage and debt worries, they should reduce credit card debts where possible.

London & Country Mortgages are advising borrowers to sign up for a fixed rate mortgage as soon as possible, providing they will not incur a penalty charge in doing so.

Borrowers nearing the end of discounted-rate or fixed can reserve a new mortgage deal up to three months in advance.