Mortgages Uncovered

Whilst a variety of different mortgage customer are now offering their customers better interest rates following the recent BofE rate reduction those who have fixed rate mortgages could have seen an increase of a general £68 a month more recent results show.

The BofE released statistics that showed they had found 1.4 million home owners who were coming off their borrowers special rate mortgages in 2008 were to become subject to a general 10% increase.

80% of homeowners have said that they feel that their homes had dropped greatly in value across the course of the past year shows the Bank’s report.

4% of people who have mortgages are suffering now with negative equity; however, this is a figure that looks set to be increasing.

As a general rule, monthly income has declined by £100 from 30% of the households that were questioned.

Bank of England’s report stated:

“Around 40 per cent of mortgagors reported that they owed more than £90,000 and almost 15 per cent said they owed more than £150,000.”

1% of people who were surveyed also claimed that they would consider a remortgage on their property to give them some free money to cope with utility bills and other credit commitments.