borrowers set for extremely tough 2008Some borrowers are in for a difficult 2008 as the threat of repossession begins to loom large, the Repossessions Advice Centre (RAC) has said.

With some borrowers now considering remortgaging  as their costs continue to rise, the RAC has said that others could face losing their homes altogether.

The problem could be exacerbated by the fact that rising interest rates have led to many Britons taking out fixed-rate deals in recent months, the organisation added.

"People have taken out fixed rate [mortgages] within the last two years – a lot of fixed rates have been taken out because of interest rates going up, obviously people have been trying to stabilise themselves," said RAC director Paul Fletcher.

"We've actually done an analysis, and some people's mortgages are going to be going up by up to 65 per cent. They're going to be jumping off fixed rates of 5.5 to six per cent, jumping up to 8.5 per cent rates," Mr Fletcher added.

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