Almost half a million fixed-rate mortgage holders in the UK could be facing significant rises in their mortgage repayments, financial comparison service MoneyExpert is warning.
According to the comparison service, people who took out fixed-rate deals in 2003 could see their costs rise by £200 a month - equivalent to £2,400 a year.
The average interest rate on fixed-rate loans in 2003 was 4.23 per cent, but those whose mortgage fix is due to end this year could see their rates hiked to today's average of 5.5 per cent - necessitating a significant rise in their repayments.
MoneyExpert chief executive Sean Gardiner said: "Homeowners who took out fixed-rates two years ago received fabulous deals and have done very well.
"However the interest rate climate has changed decisively since then and they have to take action or risk a massive rise in their monthly mortgage payments. Doing nothing is not an option."
Fixed-rate mortgage-holders should check their terms and conditions and shop around for the best mortgage deal to which they could transfer, MoneyExpert recommends.Click here to find the best mortgage deal for you.
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