Festive period perfect for thinking about mortgage in 2008

Published: December 21, 2007

Homeowners coming to the end of their fixed term mortgages should use the Christmas and New Year break to carefully consider their options, according to a leading industry association.

Adrian Coles, director-general of the Building Societies Association (BSA), called on anyone set to look for a new mortgage deal to undertake measures including consulting their existing lender and reviewing their financial commitments with a view to potentially higher mortgage repayments.

He also highlighted the importance of reporting any potential repayment problems to a lender as soon as possible.

"People coming off a fixed rate in the new year are potentially looking at a big increase in their mortgage repayments," he explained.

"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.

According to figures published by the BSA, gross mortgage lending by building societies fell to £4.1 billion in November, compared to £4.6 billion for the same month a year previously.