Homeowners refinancing their mortgages are in for a rude awakening as they face the highest fixed rate mortgages since the start of the decade…
According to figures compiled by MoneyFacts, the average rate for a two-year loan has hit 6.64% – up from just 4.34% two years ago, which means that someone coming to the end of a mortgage on a £150,000 house they took out in 2005, will see their average repayments jump by £206 a month to £1,025.
MoneyFacts’ figures show that someone taking a typical five-year deal in 2003 on a £250,000 home loan will have to stump up almost £500 more when it comes to their new deal. Typical fixed rates are the highest since 2000.
It is estimated that around 1.4 million homeowners will see their fixed deals expire this year.