Many mortgage borrowers face financial difficulties because mortgage lenders have increased the rates of interest charged on their deals.
[UKPRwire, Thu Feb 14 2008] That is according to mform, which has carried out research revealing that the average mortgage saw its interest rate increase by 17.6 per cent between December 2006 and November 2007.
It means that many people are struggling with financial difficulties as they try to keep up with mortgage repayments.
"With the current credit crisis, the cost of borrowing has increased dramatically, and this has fed through to homeowners who now have to pay much more for their mortgages," said Francis Ghiloni from mform.
"An increase of 17.6 per cent in mortgage interest repayments is a huge hit to any family budget, which many homeowners are finding difficult to cope with," he added.
The latest figures follow a recent revelation from Moneysupermarket that there are inconsistencies in the amounts lenders charge customers when they miss a mortgage payment.
Fast property sale expert Julian King adds, "The costs of owning a home are increasing at a time when the values are falling.
"According to some analysts, the price drop is as much as £50 a day in some areas.
"Homeowners who need a quick sale are advised to avoid the traditional open market [estate agency] route, as the delays and probability of the sale falling through are too high".
Julian King is a director of National Homebuyers, the UK's leading fast property purchase firm, guaranteeing a quick sale for any property in the UK, regardless of its condition or location. The company's mortgage rescue schemes also include the increasingly popular Sell and Rent Back arrangement
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