Borrowers issued with repayment advice

First-time buyers need to consider how to keep their secured loan repayments under control in the wake of predicted interest rates rises, claims a financial expert.

Andrew McLaughlin, chief economist for Natwest, advises that borrowers should not only be aware of how much interest they are paying on their mortgage now, but also how much their payments will increase if the base rate go up.

He told the Metro that although a fixed-rate mortgage is a "good choice" for those looking to keep their payments consistent, consumers should be aware that should interest rates fall in future months, they "will not benefit".

Mr McLaughlin also recommended Britons shop around for a mortgage first before looking at potential property as it could give a better idea of how much will need to be borrowed.

Meanwhile, taking out payment protection insurance could help borrowers to keep up with loan repayments should they unexpectedly become unemployed or fall ill.

Last week, housing charity Shelter claimed that a rising number of first-time buyers are risking debt management problems as they stretch themselves to get on the property ladder.

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