Homeowners who are due to renegotiate their fixed-rate mortgages could find their payments increase by more than £1,300 a year, it has been claimed.

Debt solutions firm Newtomorrow.com said that people with mortgages worth £150,000 will be hit by a four-figure rise in annual repayments due to the rise in interest rates since they took out their last loan.

The group predicts that around 250,000 people will come to the end of two-year fixed-rate mortgages before the end of the year.

And it said that those with a £150,000 home loan will see monthly repayments jump by about £100 when they remortgage.

According to the firm, the typical two-year fixed rate in October 2005 was 4.96%, which meant homeowners with a £150,000 mortgage paid around £885 a month.

However, typical deals at the moment for a similar sum have a rate of 5.79%, with repayments of about £996 a month, which means homeowners will need to find an extra £1,332 each year to pay their mortgage.

The group said the increase is obviously even steeper for people with bigger mortgages, with those with home loans of £250,000, facing an increase of £189 per month.

John Hall, chief executive of Newtomorrow.com, said: "Several rises in interest rates over the last year have made all mortgages more expensive, and anyone coming off fixed-rate or discounted deals in the next few months will have to find extra cash."

However, he added that the recent turmoil in the financial markets, combined with the fact that inflation is currently running below the Bank of England's 2% target, means the next movement in interest rates is likely to be down.

Meanwhile research from online mortgage firm mform.co.uk shows that there has been a 70% increase in the number of 100% mortgage products available direct from lenders during the past six months.

The group said there are now 160 such mortgages available, compared with only 92 in April.

Francis Ghiloni, marketing and business development director at mform.co.uk, said: "The rise in the number of 100% mortgage products available demonstrates that lenders believe there is a genuine demand."

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