Property Rescue Blog

At its last review the Bank of England decided to keep interest rates where they were, but does this mean we are at the top of the rate rise or do we still have some way to go?

Recent rate rises have been small but consistent and financial commentators are in general agreement that more is yet to come. The Council of Mortgage Lenders expects bank rates to be around 6.0% by the end of the year, but it points out that housing costs are not purely dependent on rates of interest. Other factors, such as employment prospects and income also have an effect on how much property costs, and with economic prospects looking positive house prices might just continue their upward trend.

There seems to be some evidence that recent interest rate rises have slowed the market a little, but if rates are to rise further this will have an impact both on those wanting to get on to the housing ladder and those who already have mortgages. People who have close to 100 per cent mortgages, or have benefited from introductory offers or fixed rates will find themselves having to pay a considerable amount more when these offers end. Combined with the effect of the interest rate rises it will undoubtedly push some towards possible bankruptcy.

There are options for those who are in this situation and we’ll be exploring some of these in the next bulletin. But if you face the possibility of having your home repossessed, are in mortgage arrears, or need to sell your home quickly and without fuss, contact Property Rescue. Their specialist advice will help you overcome your financial difficulties and move on. Contact them for more information.