Remortgaging 'essential' for struggling borrowers

Financial group Torquil Clark has responded to a report from Nationwide claiming that 250,000 borrowers will be coming to the end of a fixed-rate deal in the coming months, suggesting that remortgaging will be essential for many people.

The firm said that customers must be prepared for their mortgage to be more expensive when their fixed-rate period and described remortgaging as "the only solution" for some borrowers.

Torquil Clark pointed out that financial problems could be particularly acute in the post-Christmas months when consumers will also be dealing with the fallout of their festive spending.

"Whilst borrowers may be able to shoulder the burden of increased mortgage repayments, add in the problem of credit card overload and January could be a bleak month for many families," said Jennifer Challenor, mortgage strategist with the company.

"The only solution for borrowers who will feel the financial pain of higher interest rates is to ensure they remortgage into a good deal, accept their cost of living has increased and curb their spending accordingly."

Ms Challenor advised that mortgage and loan repayments should be placed "right at the top of the list" when borrowers are prioritising their debt repayments.

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