Remortgage Shock for people on fixed rates
Thousands of people every day face the grim reality that the ending of their fixed rate mortgage deal brings with it a huge jump in monthly repayments.
The increases in interest rates over the past year mean that the current selection of fixed rate mortgage deals bear no resemblence to the deals that people signed up for 2 or 3 years ago.
While some people were lucky enough to sign up to deals at the low end of 4% the best rates on offer at the moment start at 5.5% meaning almost a 40% increase in monthly repayments.
That kind of jump can be hard to swallow for many people and those who had not done their sums and kept an eye on the market could be in for a huge shock.
There is some light on the horizon as recently a few lenders have actually reduced rates on their 3 and 4 year fixed rate deals, so those people who don't need to remortgage just yet will be holding their breath and hoping for further reductions.
At least the experts agree that the series of rate rises over the past year look to have paused for the time being with the base rate now stable at 5.75% and if inflation continues to fall back in line with government targets the rate may even drop down a notch before the year end.
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