Homeowners should be conscious that they may see an increase in demands on their spending, it has been suggested.

Citing figures from the Financial Services Authority, the Council of Mortgage Lenders (CML) reveals that around 1.4 million Britons are to face a rise in their monthly mortgage repayments over the course of this year upon the expiry of their fixed-rate deals.

Following on from such an increase in mortgage payments it may be possible that homeowners find that they are developing problems in meeting other spending obligations. Such areas may include personal loan repayments, transport costs and credit and store card bills.

Michael Coogan, director general for the CML, said: “A large number of borrowers are likely to see their mortgage costs rise when their fixed-rate deals expire this year. We may be past the peak of the ‘payment shock’ this will produce but market conditions remain uncertain and borrowing costs are continuing to rise. Borrowers need to plan ahead for higher monthly payments and look carefully at the options available to them. Anyone who thinks they might have a problem in paying their mortgage should talk to their lender as soon as possible. The earlier the borrower makes the lender aware of any potential payment problem, the wider the range of options for dealing with it.”

Meanwhile, Joanna Elson, chief executive of the Money Advice Trust, stated that obtaining financial advice from organisations such as Citizens Advice and the Consumer Credit Counselling Service can be vital for those homeowners who are coming towards the end of their fixed-rate mortgage deals.

She also pointed out that there has been a 16 per cent rise since last year in the number of people getting in touch with the National Debtline for guidance in relation to managing secured loans and mortgages. Ms Elson went on to report that those worried about how they are to handle their money should look to get advice as soon as possible. In doing so the chief executive asserted that people may find that they have more options available to them in terms of getting on a strong fiscal footing. Furthermore, it was stated that some kind of positive action can always be taken to help them with managing money.

Both Mr Coogan and Ms Elson’s comments come following the publication of Fixed-rate Mortgages - Some early advice which offers guidance to those people who are coming towards the end of their mortgage deal.

For those consumers who are worried about the prospect of increased mortgage repayments taking out a loan may be recommended. By using loans as a means of debt consolidation it may be possible that borrowers can meet numerous constraints on their spending at once, leaving them with an affordable repayment to make each month.

Speaking earlier this year, David Kuo, head of personal finance at the Motley Fool, claimed that the combination of rising mortgage costs and falling property prices is a “frightening proposition”. He went on to report that some borrowers may find that they have no choice but to go on to their money lender’s standard variable-rate deal if other avenues of financing are not available to them.

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