The Times - Homeowners ill-prepared for higher rates
As the Bank of England voted to hold interest rates at 0.5 per cent for the 66th consecutive month this week, housing experts warned that homeowners should not get too comfortable, saying that many could be left in financial difficulty because they are not fully aware of how interest rate rises could affect their mortgage payments.
“Many borrowers have been putting off remortgaging their super-low variable rates because their mortgage repayments are so cheap,” says Aaron Strutt, of Trinity Financial, a broker.
“Banks and building societies typically adjust their standard variable rate following a Bank of England base rate change. As there hasn’t been any movement for so long, they simply haven’t changed their rates but normally lenders are pretty quick to factor in a rate increase.”
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