Rate rise could push homeowners into arrears

Graham_Devon

They should be ok today then!!

Just a day before the Bank of England announces its latest decision on interest rates, it has been warned that a rise would push many homeowners into arrears.

Research found that a 2% increase in mortgage rates would lead to a £307 rise in monthly mortgage payments for clients who are already experiencing financial difficulties.

As the average mortgage payment of a CCCS client is currently £561.61, this would be a 55% increase in monthly mortgage payments, meaning that homeowning clients would have to spend almost £3,700 more a year.

Posting it up as this is often discussed, and argued that interest rate rises will/won't have an impact.

Full Article:
http://moneyfacts.co.uk/news/money/rate-rise-could-push-homeowners-into-arrears060411/

ess0two

2% rise?your having a laugh.

replumbed

the debt junkies fear interest rate rises. and will do everything they can to say interest rates should stay low. they don't want to face the truth, they overpayed for homes and other stuff.

replumbed

ess0two wrote: »

2% rise?your having a laugh.

the long term average is above 2.5%

puddy

has there ever beenn a 2% rise in one day? i thought rises were normally about a quarter of 1 percent or half

Pete111

I think this is overplayed by the media. Interest rates on mortgages etc will remain historically low even after a 2% increase...which we certainly won't see in 2011 (and probably 2012)

Oh and while we are at it the whole debt junkie think is fairly old hat replumbed. In case you haven't heard, homeowners are paying off capital debt on their homes at records rates currently (personally speaking, I've reduced my mortgage by nearly 50% in the last 3 years)

http://www.telegraph.co.uk/finance/personalfinance/8427098/Home-owners-pay-off-mortgages-by-record-amount.html#

ess0two

replumbed wrote: »

the long term average is above 2.5%

Research has found a 2% rise would push people over the edge.

The article is bolx,are we expecting a rise this big when it does eventually happen?

abaxas

puddy wrote: »

has there ever beenn a 2% rise in one day? i thought rises were normally about a quarter of 1 percent or half

Our ability to define our own interesting rates has long gone. We simply follow the market as if we dont we get our bottoms raped.

If the rest of the world comes out of this before us and we dont start raising rates with them all we'll do it store up future problems and have to emergency spike them to compensate.

Think Soros but instead of an investor, it is other central banks/economies that decide out fate.

whatyadoinsucka

A new headline for you

"Rate rise could see savers not knowing what to do with there extra money"

replumbed

ess0two wrote: »

Research has found a 2% rise would push people over the edge.

The article is bolx,are we expecting a rise this big when it does eventually happen?

Did we expect the financial crises. ok, many bears did, but did the general population?

Percy1983

The sooner the better, my ISA is 2.8% + BOE base.