Homeowners will need £2k pay rise to keep mortgage

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The average homeowner will need to find at least £100 extra each month to make mortgage payments when their fixed rate deals expire, according to debt specialists Newtomorrow.com.

The firm says people who think they will be unable to pay off other debts when their mortgage deal runs out should seek professional advice. Newtomorrow.com estimates a quarter of a million people will need to find a new fixed rate deal in the next three months or face paying expensive standard variable rates. The firm says the average homeowner with a £150,000 mortgage will need around £2,000 extra salary per year to be able to afford a new fixed-rate or discounted deal when their current deals expire. In October 2005, the average fixed-rate mortgage was priced at 4.96%, meaning a £150,...

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