Although all of the attention in the housing crisis has been directed at the sub prime market, there have been a lot of rumblings in the fixed rate mortgage market as well. Many home owners are panicking that they will not be able to hold onto their homes as news of repossessions splash over the television and papers every day. Those with short term fixed rate mortgages are really concerned, and since 1.4 million of these loans will be ending this year in the UK alone, there is some cause for concern.However, authorities are urging owners not to panic. Chris Pond of the Financial Services Authority stated, “As the UK’s financial watchdog we can help. Our new checklist sets out simple steps homeowners can take to manage their money and mortgage in difficult times. And for those who are really struggling, don’t panic. Talk to your lender or get free confidential financial advice.”Pond commented that it is best to do something now, if you feel that you are not going to be able to meet your payments in twelve months. It is best to start takign action now, before your short term fixed rate mortgage ends.
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