this thursday 10 may, bank of england will say how interest rates will rise by
Another interest rate rise this week could mean that up to seven million people will be forced to remortgage their homes according to research by moneysupermarket.com.
Another rate rise is expected on Thursday, 10 May which will stretch already struggling homeowners. Of those surveyed by the comparison website, 27% said they would have to remortgage their home if a rate rise led to a payment increase of £100 per month. But 2.6 million people will be forced to remortgage if their repayments went up by just £50.
Louise Cumming, head of mortgages at moneysupermarket.com said: ‘The looming rate rise is of grave concern. We feel it could be even half a per cent rise which will drive an alarming number of people into financial difficulty. Anyone finding it difficult to make their mortgage repayments already or who think they might after the next rate rise should try to remortgage to a better deal before Thursday.’
Worryingly, just 12% of people had budgeted for another rate rise despite over half, 53%, of people with a mortgage being affected adversely by the last base rate rise. Of these 15% are only just coping financially. More than half of all homeowners said they would be forced to find a better deal if their mortgage repayments rose by £150.
Cumming said: ‘It’s alarming that people are still not budgeting for the increased mortgage repayments a rate rise would bring. With so many saying they will be forced to remortgage if their monthly payments increase it is staggering more borrowers have not factored this in.
