Payment shock for fixed rate mortgages

Concern has been raised regarding the plight of the thousands of borrowers with fixed rate mortgages whose deals are coming to an end. Companies who offer fixed rate mortgages span (virtually) the entire market place and include Northern Rock mortgages, Mortgage Express, Barclays and Abbey Mortgages.

Those who have been on a fixed rate deal for 2-4 years will hit there next renewal with the prospect of a significantly higher rate of interest.

The monetary policy committee for the Bank of England voted to increase interest rates again in early May 2007, four times in recent months of 0.25% each time. What could be worse the the fear of the unknown and the possibility of more to come.

James Cotton, mortgage specialist at L&C was quoted as saying:
"The payment shock for many borrowers will be substantial when their deals to come an end and it's important that they do all they can to minimise it,"

"Most importantly, plan ahead and don't leave it until you're already paying standard variable rate."