Increases in monthly mortgage payments

285000 families due significant increases in mortgage repayments

This article was kindly contributed to Pace by Paul Flavin, of Zing Money.

An estimated 285,000 ⁽¹⁾ mortgage customers will experience an increase in their monthly mortgage repayments between August 2014 – December 2014 when their current mortgage deal expires.

A large volume of these mortgage customers will revert from their existing pay rates between 3% & 4%, moving onto an average Standard Variable Rate (SVR) of 4.4% ⁽²⁾.

Based on a mortgage of £150000 over a term of 25 years, this could mean an increase in mortgage payments of £114 per month.

In addition to this, once out of any fixed rate deal, you could be exposed to any increases in the bank base rate. With the Bank of England predicting an increase in interest rates being imminent, a 0.25% increase in base rate would also add roughly £30 to your monthly mortgage payment, still using the £150000 example.

Based on this same £150000 mortgage, switching to a market leading two-year fixed rate deal would save you over £3000 per year when compared to the payments on the average SVR rate. That’s the equivalent of a decent family holiday, paid for out of your monthly mortgage savings.

To ensure that you are in the best financial position with your mortgage it’s recommended that you seek independent mortgage advice.

Zing have eight advisers available to visit you at a time and place that’s most convenient for you so, why not give us a call on 01702 423901 or email us on [email protected] to arrange your FREE, No Obligation mortgage review.

⁽¹⁾ CACI July 2014

⁽²⁾ CML July 2014

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% can be charged. Our standard fee for advising & arranging your mortgage is £399.