Nationwide points to remortgaging

It has long been advised that borrowers whose fixed-rate deals will expire this autumn are set for a shock as higher rates kick in, and Nationwide has moved to counter such problems by saying that remortgaging could be advisable. Over 250,000 borrowers are going to see their fixed-rate mortgages change to variable rate products - meaning a rate rise of three per cent - unless they act quickly.

One way of keeping payments down would be to refinance, the lender suggests, though even two-year fixed-rate products are somewhat more expensive than they were before. “For some borrowers it will come as a quite a fright to see their mortgage payments increase dramatically,” commented Nationwide director of mortgages Matthew Carter. “To absorb some of this shock, borrowers need to consider remortgaging as soon as their deal ends, or beforehand if their lender allows it,” he added.

The government has also long been aware of the difficulties faced by such borrowers, chancellor Alistair Darling suggesting that longer fixed-rate deals should be more widely available. Compare the latest mortgage products here It has long been advised that borrowers whose fixed-rate deals will expire this autumn are set for a shock as higher rates kick in, and Nationwide has moved to counter such problems by saying that remortgaging could be advisable.