Mortgage rate rise leaves millions facing higher mortgage payments.

With each passing day many advised of a mortgage rate rise by their lender, are getting closer to higher monthly mortgage payments. From 01 May those who have not sourced an alternative deal will have to re-adjust their monthly budget to accommodate increased mortgage costs.

Halifax mortgage customers are expected to be the worst hit by the announced mortgage rate rise, however Co-operative, Clydesdale and Yorkshire Bank customers are also to be affected. Lenders are attributing rising rates to a weak UK economy and increased funding costs.

Over the past few weeks ten mortgage providers have announced interest rate increases for new mortgage deals. Mortgage holders have expressed fears that lenders tighten mortgage criteria could now mean they could struggle to find a better deal.

The Halifax standard variable rate increase is 0.49 per cent and is thought to affect around 850,000 home owners. As the average mortgage balance of those likely to be affected is £67,500, payments are due to increase by almost £16.40 per month. It is important to remember that these figures are average and those with a larger loan will experience a higher cost increase.

Those who have not paid off much of their outstanding mortgage or find themselves in negative equity may find themselves stuck, unable to switch deals. Those in this position should not panic as historically speaking the new rates announced are still low.

Indeed the CML advise there is little evidence that borrowers notified of a mortgage rate rise will be paying uncompetitive mortgage rates by staying on their lender's SVR.

For those whose rate is increasing above 4 per cent, cheaper offers can be found by Deal Direct. Call one of our skilled impartial advisers today.