Cost of borrowing rises according to National Homebuyers
The cost of borrowing has increased so much in the last year that many people now find themselves in financial difficulties.
[UKPRwire, Tue Jan 22 2008] That is according to Money Expert, which claims that one in every 50 adults has missed a repayment in the last six months.
The firm said that the cost of borrowing has increased at a far greater rate than the base rate of interest.
Worryingly, around 926,000 people have got into financial difficulties in the last six months alone and have failed to meet at least one repayment.
Sean Gardner, chief executive of Money Expert, had this advice for borrowers.
"If you have a cloudy credit record then you need to be aware that the rates you see online or in advertisements aren't necessarily the rate you will be offered when you apply," he said.
"Frankly you could end up with a loan costing far more than what you had hoped - so don't be caught unawares," added Mr Gardner.
Fast property sale expert Julian King adds, "Homeowners who about to come off of their fixed-rate mortgage and predict some danger with the current 5.5 per cent base rate should consider a Mortgage Rescue Scheme such as Sell and Rent Back.
"Sell and Rent Back is where the homeowner sells property quickly, often avoiding bailiffs or repossession, but they remain living in their home.
"The homeowner must act quickly and not bury their head in the sand and hope the problem goes away. it will not".
Mr King is a director of National Homebuyers, the UK's leading Sell and Rent Back provider. The company also arranges for immediate purchases of properties for vendors who need a quick house sale for whatever reason.