US credit crunch affects UK

Across the UK some two million homeowners are set to come off low fixed-rate deals in the next 18 months, and could see their interest rate shoot up from around 4.5% to around 7.6% unless they take action. Given the recent US-triggered global credit crunch, it seems likely that tens of thousands more home buyers may also be pondering their mortgage options.

Melanie Bien, director at independent mortgage broker Savills Private Finance (SPF), said: “Many people will be coming off cheap fixed rates in the next few months and worrying about higher monthly bills.

If you are on a tight budget and need certainty, a fixed rate is the answer - even if they are initially slightly more expensive compared with discounts or trackers.”