Figures
from housing charity Shelter have found that 56% of borrowers would struggle to
keep up with their mortgage payments if interest rates rose by 1%.
More
worryingly, 11% said they would be unable to pay monthly payments altogether.
Campbell
Robb, Shelter's chief executive, said: “These shocking findings show that over
half of mortgage holders are living on a knife edge and could be tipped into a
spiral of debt if their mortgage payments went up. "
Despite the Bank of England interest rate remaining low, current pressures on banks mean that mortgage rates are rising it is a concern that many people won't have plans in place to manage increased costs.
Meanwhile, Santander will lift its standard variable rate from 4.24% to 4.74% tomorrow. The move, which the bank blames on a range of factors including higher wholesale costs, will add £26 a month to the average cost of a £100,000 mortgage.
It is no surprise therefore , that despite the Base Rate remaining currently static, the popularity of fixed rates has been steadily climbing in recent months as mortgage holders endeavour to secure their position financially whilst rates are low.
If you are
concerned about maintaining your mortgage in the event of a rate change and
would like to consider alternatives, please feel free to get in touch.
