Last week, Pete Mugleston, the managing director at www.onlinemortgageadvisor.co.uk, outlined what the coming “huge mortgage shock” means in reality.
The mortgage expert explained: “Despite several mortgage lenders having lowered the rates on their fixed-rate mortgages this week, this morning’s news that there will be a ‘huge mortgage shock’ in the spring when interest rates peak, and mortgage borrowers come off their previous fixed terms will be deeply concerning for many.
“It is encouraging though, that the UK’s major mortgage lenders and the chair of the Financial Conduct Authority (FCA) met yesterday to discuss how lenders can provide support for those who encounter problems paying their mortgage.
“These are the early signs that lenders are starting to be proactive in offering support to those in need. However, as to whether these measures will go far enough to help homeowners when interest rates peak in the spring remains in question.”