This is a kick in the groin for homeowners. It’s bad news for two reasons: firstly, a rise of half a percent in repayment rates equals a 12.5percent rate hike on a 4 percent mortgage. At a time of rising energy prices and food bills, this will hit people hard. Secondly, those borrowers who are already on the verge of falling behind couldbe tipped over the edge or boxed in from being able to remortgage onto a better deal if they’re already in negative equity.
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