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Interest rate rise 'likely to impact on homeowners'
Posted by Craig Williams
Many homeowners across the country would run into monetary problems if the Bank of England decided to raise the nation's base interest rate "too far too quickly".
That is the opinion of Ray Boulger, senior technical manager at John Charcol, who believes that any rapid increase implemented by the Bank of England's Monetary Policy Committee (MPC) could result in households struggling to keep afloat financially.
"There is undoubtedly a factor whereby the longer interest rates stay very low and the more people get used to low interest rates," he noted.
Mr Boulger added that, as a result of this, a rise in the rate would cause a "shock", as a restructuring of personal budgets may be required in order to cope with the additional outgoings the increase would cause.
He went on to note that it appears likely that the MPC will opt to up the figure in the near future, as the minutes of its latest meeting showed that three policymakers had voted for this last month.
01/03/2011 16:05
News category: Property