Fixed rate borrowers could face 1.5% payment rise

According to CML estimates, 1.3m borrowers took out fixed-rate mortgages in 2005 and a further 1.5m in 2006 with most of these mortgages fixed for two years. The majority of these borrowers will face increases of between 0.75% and 1.5% on their mortgage rates. The CML calculates the average two-year fixed-rate borrower coming to the end of their term later this year originally had a mortgage of around £114,000. On a repayment mortgage taken out at 4.6% (the average two-year fixed rate at the interest rate trough of September 2005), this would result in a rise of about £102 a month (fr...