Tough 2008 predicted for mortgage borrowers

Next year could see many mortgage borrowers coming down to earth with an uncomfortable bump as their fixed-rate terms come to an end.

That's the opinion of one financial adviser, who claims that next year's credit conditions will be somewhat harsher than when some people first took out their mortgage deals.

"I think it's no secret that next year's going to be a tough year financially for a lot of people," said Susan Hannum, savings manager at AWD Chase de Vere.

"It's going to be a bit of a shock I think, for some people, when one of the unfortunates would be fixed-rate mortgages coming to an end."

She added that things could be made more difficult by the rise in utility costs, with bills likely to increase for gas, electricity and water.

In order to get out of these financial problems in the long-term, Ms Hannums believes that there needs to be a shift away from a credit culture to a savings ethic among people in the UK.

"I think [credit is] really what got us here in the first place so we need to think of other methods and hopefully turn things around," she said.

According to Credit Action, the average household debt in the UK is £8,765, excluding mortgages.