Homeowners with Halifax, the Bank of Ireland, and RBS have all been put on notice that if they are paying on their lender’s SVR that there will be an increase in their cap and for some that will be a worry.  Many homeowners are finding it difficult to make their mortgage payments as they are and it is likely that those having financial problems are the ones that cannot remortgage.  For many homeowners are stuck in their current mortgage payments with little equity available to help them remortgage and get out of rising interest rates.  Those in negative equity are very deeply stuck with little to no options available to them.

The further expected decline in house prices is not going to give homeowners a rebound in their equity levels.  It will take decades to recoup the losses in equity for many.  Without a steady growth of new buyers the housing market will remain weak.  The nearing end of the stamp duty holiday had triggered many new first time buyers to step out to buy but that is drawing to an end in a matter of days.

Nigel Lewis, property analyst at FindaProperty.com, said, “Against a backdrop of an already struggling property market, rising mortgage fees and with the end of the stamp duty holiday looming, this latest revelation spells yet more bad news for what is a very sensitive property market.”

For those homeowners that are stuck they should approach their current lender and discuss options.  Many lenders are willing to work with their customers and will have options or at least can help homeowners lay out a plan toward change for the future.