The middle-class mortgage shock | Money

Tim Green is getting nervous. His five-year fixed mortgage deal ends in February and he is trying to secure a new deal. Green, 46, from north London, pays £1,330 a month for his five-bedroom house. The rate on his £852,000 interest-only loan is 1.79 per cent — but he knows it is only going up.

Green, a director at an interiors company, is looking to lock in a new deal now, through his financial adviser Credius, to shield himself from further rate rises. You can usually secure a new mortgage up to six months before your deal ends.

He is facing a new rate of 3.29 per cent, costing almost exactly £1,000 more a month. Green estimates his mortgage payments and energy bills will soon

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