Could you be in financial difficulty if UK mortgage rates rise?
According to an independent UK think tank the Resolution Foundation, over a million UK households could experience financial difficulty if mortgage rates were to rise.
It is thought that those spending over half their monthly income repaying their mortgage and debt could be end up in mortgage 'peril’
If the base rate was to rise to 3% as forecast by the markets, then the number of household using over than half their disposable income to repay their debts could rise from 600,000 to 1.1 million.
The BoE Governor Mark Carney has suggested that interest rates are likely to rise sooner than expected. Previously it was said that interest rates would rise once unemployment hit 7%. As unemployment currently stands at 7.4%, it has been suggested that the 7% employment figure could be adjusted to 6.5%.
An exact time frame for when interest rates will rise is unknown, however an increase is inevitable and when it happens UK mortgage rates will rise too. Those already struggling to repay their debt could find themselves pushed to their financial limit.
If this describes your situation then you are advised to act before the BoE increases interest rates.
If you are concerned rates could rise and you want to remortgage and lock into a low rate offer while cheap deals are available, you should speak to an adviser at Deal Direct.
We offer free, independent and impartial advice. We can help you work out your remortgaging options to save money on your home.
Call today on 0800 048 8828 or click below for an online mortgage comparison.
