Martin Lewis has warned people who have a fixed-rate mortgage about what he feels is a 'ticking timebomb' for them if their deal ends soon. Predicting a hike in interest rates, the financial guru fears this could have a lasting impact on homeowners.
The Money Saving Expert founder explained that many families could have issues when they try to negotiate a better deal after their current mortgage expires, with some facing the prospect of not passing affordability checks. These are designed to determine whether a customer wanting to get a mortgage can pay for it.
Homeowners on fixed-rate deals which follow the Bank of England's interest rates could face having to make bigger payments. And if they fail to get a better deal because they can't pass the affordability checks, they could be stuck paying high and fluctuating interest rates as well as battling the cost of living crisis in every area of their finances, WalesOnline reports.
