This sorry state of affairs means that around 7 million Brits would have to remortgage to fend off the highly anticipated May rate rise if it increased their monthly payments by up to £100, 2.5 million of those doing so if it rose by only £50.
Head of mortgages at moneysupermarket.com, Louise Cuming, said: The looming rate rise is of grave concern we feel it could even be a half per cent rise. Assuming this is the case, many borrowers will have seen their mortgage repayments rise by 1.25 per cent over the past twelve months an increase of £156 a month of £1,875 a year.
Anyone finding it difficult to make their mortgage repayments already (or who think they might after the next rate rise) should try to remortgage to a better deal before next Thursday if they can. However it is worrying that people who are relying on being able to remortgage if their repayments rise may not be able to afford to do so due to the early redemption charges in place on many products. These people need to review their finances and budgeting immediately.
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