One million UK homeowners face a 60 per cent jump in mortgage rates

More than a million homeowners face a jump in mortgage payments of up to 60 per cent when their cheap fixed-rate deals end.

Analysts fear the impact will result in a surge in repossessions.

The Council of Mortgage Lenders is so concerned that it has taken the extraordinary step of suggesting that some homeowners should sell their property rather than risk losing it.
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It comes as the UK's third largest buy-to-let mortgage firm said it was facing funding uncertainties today.

The update from Paragon - whose costs have soared following the summer credit crunch - alarmed investors as shares in the company tumbled by almost half.

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