21
Feb
Fool responds to committee comments
After the monetary policy committee's Kate Barker claimed that
homeowners will be hit when changing mortgage deals, Fool.co.uk has
said that people can act quickly to avoid this.
Head of personal finance at the organisation David Kuo noted that
both increasing repayment of mortgages and dipping house prices may
mean that those who have recently purchased homes are in for tough
times.
But in response to Ms Barker's statements, he urged homeowners to
reconsider their finances so that they do not feel the impact when
they move to other rates.
"Most lenders will look more favourably on borrowers whose
mortgages are small compared to the value of the property. But it
is important to determine your lender's policy and the best way to
find out is to ask," he commented.
This week, Ms Barker had said that consumers may be hit when they
have to enter standard-variable rate deals.
However, the official stated that it may be too soon for the Bank
of England to lower interest rates again in March.