UK mortgages set to soar

Things are about to get tougher for the majority of UK property owners according to the Bank of England.

The financial crisis affecting the Eurozone is increasing the cost of borrowing for all high street banks across the country and experts believe higher costs will be passed on to millions of mortgage customers throughout the UK property market.

Millions of home owners already struggling with monthly mortgage payments are expected to face further increases as the monetary crisis deepens. Average rates on new tracker mortgages have already increased by 0.5 per cent in recent months.

Several of the larger mortgage providers have already upped the rates on standard variable rate loans and other lenders are expected to follow suit in the months ahead. According to the Council of Mortgage Lenders around 8 million UK property owners have a variable rate mortgage and many others currently on fixed rate loans will need to re-mortgage once their deal comes to an end.