Fixed-rate borrowers urged to plan ahead

Borrowers that will be coming to the end of fixed-rate deals between now and next year are being urged to plan ahead.

The advice was given by the Council of Mortgage Lenders (CML) yesterday, following the announcement that the base rate would not be rising in June.

According to the CML, around 2.8 million people will have fixed-rate mortgage
terms coming to an end in this period.

The body has warned these that they “almost certainly” face higher payments in the future.

CML director general Michael Coogan commented: “More than two million borrowers over the next year and a half will reach the end of fixed-rate deals, and will face the prospect of higher mortgage payments.”

He added that most people would find the uplift “manageable” but said it makes sense to start planning ahead, especially for anyone who thinks they may face financial difficulties.

The base rate now stands at 5.5 per cent following four rises, each of a quarter per cent, in the past 12 months.

© Adfero Ltd

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