Millions of cash-strapped homeowners in England are facing imminent increases to interest rates as lenders announce staggering price hikes to a range of mortgages.
The increases couldn’t come at a worse time for Brits as many are already struggling to make ends meet due to the rising cost of living, increase in fuel prices and the poor economic state; but award-winning Debt Advisory Line is urging people not to suffer in silence.
John Goodfellow, Chairman at Debt Advisory Line, says: “These recent increases to mortgage rates may be the final straw for many people. Alongside a rise in fuel expenses, the increases to homeowners will put many under severe strain and some may fall into a downward spiral of debt, but we are here to help.”
The property market seems to have taken a recent turn for the worse. Halifax announced it would be raising its standard variable rate (SVR) from 3.5% to 3.99%, affecting 850,000 customers. This would mean those with over £100,000 remaining would see a monthly increase of £24 and those with an interest-only mortgage should expect a 14% rise in monthly payments.
RBS will also make increases to two of its products; the Offset Mortgage and home loans from the One Account range. Both will see a rise from 3.75% to 4%, which will affect 200,000 borrowers. The Clydesdale and Yorkshire Bank are increasing prices by 0.25%, with rates rising from 4.59% to 4.95%, affecting 30,000 customers and Co-op’s SVR will also rise from 4.24% to 4.74% affecting 54,000 borrowers with the 0.5% increase.
The banks claim that the rises, due to hit homeowners from 1st May 2012, are a result of the higher costs of funding a mortgage and the weak economy. However, the Bank of England has not increased the base rate, which is currently at a historic low of 0.5%.
This added pressure on borrowers will hit the purse strings hard and could leave many homeowners in severe financial difficulty. John Goodfellow says: “With many families already feeling the pinch, these increases to monthly mortgage repayments may have a disastrous effect on their finances. We urge people to come to us if they need any advice on their finances.”
“We have helped thousands of people, who thought bankruptcy was their only option, get their finances back on track, reducing their monthly debt repayments. We can manage your case from start to finish, reducing the stress and worry that comes with financial difficulties. “
The staff offer professional debt management help and advice, including debt management plans, individual involuntary arrangements (IVA’s), and bankruptcy advice. Debt Advisory Line aims to help people repay debts in the shortest time possible.
For press information please contact:
Vicky Dall or Rebecca Elvin
The Whole Caboodle
T: 01423 523000 or 07803 175191