Around a million borrowers could see a surge in mortgage payments in the next few months as fixed rate deals end. In the summer of 2005 2 year fixed rates hit as low as 4.25% but are now around 6%. (If the borrower doesn’t shop around the rates are even worse.) On an interest only mortgage that is an increase of over 40% on the monthly payments.
For buy to let landlords a number will now have to pay out more on their mortgage than they will receive from their rent.
Not good news for the property market.
No comments:
Post a Comment