Homeowners set to face extra costs with an interest increase “drawing closer”.
Despite the MPC’s decision to keep interest rates at 0.5%, Bank of England Governor Mark Carney remains convinced that a rise in interest rates isn’t far away. Those with significant debts, for instance in a mortgage, could see extra cost added onto their repayments once their current loan deal expires.
Over a million people with mortgages have never experienced an increase in bank rates, which may leave many unprepared for the extra monthly costs. If you are worried about organising finances and dealing with repayments, you should seek financial advice before interest rates do increase.
It is now predicted that rates will rise sometime around spring next year, giving you just a short time to prepare. More information on how interest rate increases could affect you can be found on the BBC website.