Homeowners whose fixed-rate mortgage deals are coming to an end this year are facing a “massive bill” which they will struggle to pay, it has been revealed.
Research by Mortgage Monitor has found that 340,000 households will come to the end of a five-year deal in 2008 , owing around £1.02 million.
Of these, five per cent admitted they had absolutely no idea how they would afford the cost of the new repayments, having seen an increase of over 35 per cent in the past five years.
Around 14 per cent stated they had suffered insomnia through worrying about the loan and 17 per cent claimed to have had an argument with their partner in relation to the payments.
Les Jacobs, chairman of Mortgage Monitor, remarked: “For many people, finding the right deal will make the difference between making ends meet or facing financial strain or even repossession.
“The massive bill that homeowners face makes it more important than ever that they can find impartial advice and guidance.”
Despite the figures, Abbey Mortgages reports that five-year fixed-rate products are rising in popularity, attributing the increase to economic uncertainty.
© Adfero Ltd