Warnings of interest rate increases
May 24th, 2011 by Lianne
Interest rates in the UK are currently at the exceptionally low rate of 0.5%, and yet analysts are now warning that these interest rates are set to rise as high as 5%, or potentially, even higher.
These could see new home-buyers spending more than half of their take-home pay on mortgage repayments.
For existing mortgages and remortgage deals, the rise in interest rates would also see a significant increase in the amount to be repaid.
This doesn’t bode well for those who are already struggling, although the Bank Rate is not expected to change before 2013.
The last quarter of 2010 saw 7,900 reposessions, while this figure had risen to 9,100 for the first quarter of 2011.
This entry was posted on Tuesday, May 24th, 2011 at 5:02 pm and is filed under General, mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.