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Borrowers Should Get Independent Mortgage Advice

Borrowers Should Get Independent Mortgage Advice Market analysts, Mortgage Monitor, have urged homeowners to seek impartial advice and guidance if they plan to get a new mortgage or even a second mortgage, amid revelations that many mortgage-holders are struggling to keep up with payments.

A survey by the group found that some 340,000 homeowners in receipt of fixed-rate mortgages have found themselves under increasing pressure to meet payments as their five-year deals come to an end.

Mortgages taken out in 2003 have seen monthly repayments increase by over 35 per cent since the New Year and 20 per cent of homeowners admit that the increase has made them more concerned over their ability to meet the payments.

The questionnaire of 1,143 mortgage holders found that 23 per cent have become more anxious about keeping up with repayments, while one in 20 - five per cent - have no idea how they are going to pay the bill on their property, which for many will come to £1.02 million.


Mortgage Monitor chairman Les Jacobs commented: "For many people, finding the right deal will make the difference between making ends meet or facing financial strain or even repossession.

"The massive bill that homeowners face makes it more important than ever that they can find impartial advice and guidance."


The Mortgage Monitor study also found that many homeowners were unaware of how to go about finding the best deals to remortgage, in spite of the best efforts of a publicity drive by the Financial Services Authority (FSA).

The watchdog has launched a £2 million campaign to advise the 1.4 million mortgage-holders whose fixed-rate deals are drawing to a close in 2008.

According to the Mortgage Monitor research, some 40 per cent said that they would seek help from a broker, 17 per cent were determined to stick with their current lender - while 11 per cent said that they would ask friends for advice on what to do.

Remortgage News posted on 20 March 2008

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