Mortgage lenders are being urged to slash crippling early exit fees on fixed rate loans as millions of borrowers face massive increases in their monthly repayments because of soaring interest rates. Home-owners whose fixed interest deals are due to expire in the next year face the prospect of having to pay almost double every month when they end, but cannot renegotiate those deals because of whopping exit fees.
Calls for lenders to reduce or scrap these come as the Bank of England put up lending base rates to 1.75 per cent and some experts predict that mortgage interest rates could hit 7 percent in the next two years.
Greg Marsh, CEO and founder of cost-of-living champions nous.co, said: “This is a ticking time bomb for hundreds of thousands of families in the UK. The banks can’t just ignore the current crisis. They must relax their rules now to avoid the disastrous consequences their customers are facing through no fault of their own.”
