According to a new report, at least one in four of all UK homeowners are concerned about the poor credit mortgage market and worried that they may not be able to make the payments on their own mortgages. At least one million poor credit mortgages could be at risk for default this year as they transition from fixed to variable interest rates. Many feel that the number of poor credit mortgages at risk is closer to 3 million and when coupled with news about falling property values, consumers are concerned.Martyn Hocking, the editor of Which? Money, said: “We’ve all heard about the credit crunch in the news, but people taking out a new mortgage deal are now seeing its impact. Mortgage payments are often your largest monthly expense, so understandably some people are worried about them going up. There are a few simple steps you can take to reduce the impact. Most importantly, shop around and use an independent mortgage adviser.”For those with a poor credit mortgage that may be switching to a variable rate, experts are encouraging refinancing when possible. The move from the Bank of England to bailout banks will most likely not affect homeowners quickly, so they will need to take action on their own.
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