by Mark Johnston
A charity that deals solely with debt issues and debt management has recently revealed that there may be a large portion of the UK population at risk of loosing their homes because of debt.
Industry experts have suggested that the number of homes that could be repossessed could be up to 40,000 this year. And when interest base rates go up, as is widely accepted to happen this year, the number of repossessed homes will go up to more than twice this figure.
The Bank of England’s Andrew Sentence has warned that interest rates could “quadruple in a year” hugely impacting average households. In a recent statement, Andrew has predicted that the base rate will be as high as 2 per cent by next year, suggesting that if interest rates don’t go up, it would put Brittan in a more difficult economic situation.
With the gradual rise in inflation and the cost of living is increasing too, Mr. Sentence failed to argue his case successfully for a doubling of the interest rate this month. He claims that due to the sharp rise in cost of living, the base rate will need to increase to ensure a control over inflation. A warning to families is that interest rates are likely to go up to 2 per cent by this time next year.
Recently the Bank of England maintained the startling base rate of 0.5 per cent. This should come as no surprise to the readers of MortgageRates.org. With the struggling pound and the weak progress of the pound against other currencies, the Monetary Policy Committee has decreed that the base rate should not change. This marks the 25th month running that the Monetary Policy Committee has decided against a change.
The Consumer Credit Counselling Service (CCCS), a national debt charity has revealed that they were contacted by about 90,000 home owners last year in strife. These home owners were struggling with their debt situations, an average debt of £30,160 in credit cards and personal loans, and were worried about maintaining their repayments. These figures will easily break the 100,000 mark as soon as the interest rates are increased by the Bank of England’s Monetary Policy Committee.
Director of the CCCS, Delroy Corinaldi, said “So many households are just managing to make ends meet, that even a small increase in the cost of their mortgage may push them over the edge. As far as possible, families need to think how they could pay such increases and seek help at the earliest opportunity if they feel that they cannot cope.
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