Why well be forced to remortgage and go back to work

By: Luke Ashworth

Most people however, have resigned to the fact that they will have to remortgage if their payments rose by just ?50 per month. Rate rises is of increasing concern as, if it only rose by a half per cent, it would drive an alarming number of people into financial difficulty. Homeowners on a ?150,000 interest-only tracker mortgage face additional costs of ?750 per year, or ?62.50 per month, for every half per cent that interest rates rise.

If we do assume the next rate rise is half a per cent, many borrowers will have seen their mortgage repayments rise by 1.25 per cent over the past 12 months.

That is an increase of ?156 a month, or ?1,875 a year. Anyone finding it difficult to make their mortgage repayments already (or who think they might after the next rate rise) should try to?, in the UK is just six months or 12 months with half pay. The burden of a mortgage is forcing mothers back into the work place sooner rather than later and is then racking up even more bills such as childcare. The only way to get around this is to buy early and become financially stable before settling down in a home and starting a family. It also goes without saying that saving a little of our take home pay each month is a necessity in preparing for a change in financial situation or a surprise rate rise.

Top Searches on
Mortgages
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Mortgages
 



Share this article :
Click to see more related articles