Abbey comments on Nationwide 'rate shock' release

Following Nationwide's press release on the 'rate shock' facing borrowers who are seeing their fixed-rate deals expire, Clive Kornitzer, Abbey Mortgages, said: "In 2005, around 44 per cent of all fixed rate mortgages by value were in the South East, and so we can expect to see this part of the country see the greatest shock. People who are coming off their fixed-rate introductory period will be seeing the effects of a 1.25 percentage point rise in the base rate over the last two years which has helped drive up mortgage rates. In the current economic climate, people who find themselves in this position should think carefully about what mortgage would best be suited to their individual needs."