Consumer confidence and the economy as a whole could suffer if buyers in the UK find themselves in situations of unmanageable debt.

Such is the claim of the Association of Mortgage Intermediaries (AMI), which is calling on its members and lenders as a whole to play their role in preventing financial hardship due to increasing costs.

While interest rates in recent months on credit cards, loans and other borrowing rose until December, those on fixed-rate mortgages have enjoyed stability of payments on their homes - but this could be set to change.

Chris Cummings, director general of the AMI, said: "Borrowers who are coming out of fixed-rate mortgages may find the sudden hike in payments a huge shock and suffer financial strain as a result."

In related news, Citizens Advice has released a report this week suggesting that lenders providing mortgages to those on low incomes have not acted responsibly, with brokers providing "dubious" advice to those likely to be in danger of trouble with debt.ADNFCR-1287-ID-18393521-ADNFCR

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