Mortgage holders urged to 'consider their options'

Homeowners are being urged to plan their mortgage carefully for the coming year and look for options which will allow them to keep repayments low.

The Building Societies Association says that as 2007 draws to a close, mortgage holders should start to think about switching their loans – particularly those with a fixed rate deal which expires in 2008.

Adrian Coles, director-general of the association, said: "People coming off a fixed rate in the new year are potentially looking at a big increase in their mortgage repayments.

"As a consequence, it is important they begin to consider their options to help make their repayments as low as possible when their fixed rate period finishes."

He added that there are steps to be taken in order to guarantee getting a good deal, the first of which is contacting your existing lender.

Mr Coles also recommends considering how higher mortgage repayments could impact on other financial commitments such as credit or store card payments.

Thirdly, homeowners are urged to speak to their mortgage lender if they are concerned they may not be able to keep up repayments.

The latest figures from the Council of Mortgage Lenders show that gross lending fell by eight per cent in November on the previous month.

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