Likely Interest Rate Rises To Hit Home Owners Hardest - Debt Advice Foundation

Likely Interest Rate Rises To Hit Home Owners Hardest

Andrew Lilico, economist at influential think-tank Policy Exchange, has warned that the base rate could increase to 8% by 2012, which means mortgage rates are likely to climb to around 11.5%. At this level, a £100,000 variable rate mortgage, which currently costs £333 per month will almost treble to £958 per month, pushing many home owners over the precipice.

This rise in interest rates, along with the expected public sector job cuts and imminent VAT increase will undoubtedly lead to a significant increase in the numbers seeking
debt help.

Andrew Lilico, economist at influential think-tank Policy Exchange, has warned that the base rate could increase to 8% by 2012, which means mortgage rates are likely to climb to around 11.5%. At this level, a £100,000 variable rate mortgage, which currently costs £333 per month will almost treble to £958 per month, pushing many home owners over the precipice.

This rise in interest rates, along with the expected public sector job cuts and imminent VAT increase will undoubtedly lead to a significant increase in the numbers seeking
debt help.

To read the full article click here.

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