The rising cost of living coupled with higher interest rates could create a wave of new mortgage prisoners who don’t qualify for a new deal and are left paying costly variable rates, advisers fear.
Dean Esnard, director at Magni Finance said the option for product transfers should help make sure most borrowers don’t end up on high variable rates.
He said: “When you do a rate switch you don’t go through an affordability check – providing you have maintained your mortgage payments.
“You are forced to stay with whatever your lender offers you, but normally the rates an existing lender will offer you are better or in line with the existing market.
“From what we’ve seen there is nothing to panic over yet. Rates have increased a lot but I think they will slow down.”
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