Post by nickd on Mar 12, 2011 20:05:16 GMT 1
The National housing charity Shelter sent out a warning to people to make sure they are prepared for a hike in mortgage and borrowing interest rates. This was issued in expectation that there would be a rise. For now rates are going to stay at their historically low rates for a bit longer but we can expect a rise some time in the not too distant future.
When the rise is announced it may come as good news to savers but it will send thousands into a spiral of debt; the key thing is to get help from a reputable advice agency such as CAB/Shelter or some of the reputable and non fee paying agencies who are able to help.
Here's what Shelter say....
10 March 2011
One in four homeowners may be completely unprepared for the costs of rising interest rates, Shelter has warned.
Today the Monetary Policy Committee meets to decide whether record low interest rates should go up.
In a survey of more than 1,500 UK homeowners by the Council of Mortgage Lenders, one in four people believe current interest rates are either higher, the same than they have been in the past or simply don’t know.
This is particularly concerning given recent Shelter research showing that in the past year:
the number of homeowners struggling to pay their mortgage has risen by 78 per cent
the number of people using credit cards to help pay their rent or mortgage has increased by 50 per cent.
Campbell Robb, Shelter’s Chief Executive said:
‘It is frightening to think so many homeowners are completely unaware that interest rates are at a record low. We are extremely concerned that millions will be financially unprepared when interest rates go up and won’t have plans in place to manage increased costs.
‘It’s not just mortgage costs that will be affected. Charges on other debts will rise at the same time, meaning people will have to pay more on other money they owe.
Mr Robb added: 'Even for those who have been managing to stay afloat so far, we know only too well that just a small increase in some people’s monthly outgoings will be the trigger that finally pushes them over the edge into a spiral of debt, repossession and possible homelessness.’
To find out where you can get help - use our link to advice agencies you can help up you......
mylegal.org.uk/index.cgi?board=getadvice
Read more about what Shelter say....
england.shelter.org.uk/news/march_2011/rate_rise_alert
When the rise is announced it may come as good news to savers but it will send thousands into a spiral of debt; the key thing is to get help from a reputable advice agency such as CAB/Shelter or some of the reputable and non fee paying agencies who are able to help.
Here's what Shelter say....
10 March 2011
One in four homeowners may be completely unprepared for the costs of rising interest rates, Shelter has warned.
Today the Monetary Policy Committee meets to decide whether record low interest rates should go up.
In a survey of more than 1,500 UK homeowners by the Council of Mortgage Lenders, one in four people believe current interest rates are either higher, the same than they have been in the past or simply don’t know.
This is particularly concerning given recent Shelter research showing that in the past year:
the number of homeowners struggling to pay their mortgage has risen by 78 per cent
the number of people using credit cards to help pay their rent or mortgage has increased by 50 per cent.
Campbell Robb, Shelter’s Chief Executive said:
‘It is frightening to think so many homeowners are completely unaware that interest rates are at a record low. We are extremely concerned that millions will be financially unprepared when interest rates go up and won’t have plans in place to manage increased costs.
‘It’s not just mortgage costs that will be affected. Charges on other debts will rise at the same time, meaning people will have to pay more on other money they owe.
Mr Robb added: 'Even for those who have been managing to stay afloat so far, we know only too well that just a small increase in some people’s monthly outgoings will be the trigger that finally pushes them over the edge into a spiral of debt, repossession and possible homelessness.’
To find out where you can get help - use our link to advice agencies you can help up you......
mylegal.org.uk/index.cgi?board=getadvice
Read more about what Shelter say....
england.shelter.org.uk/news/march_2011/rate_rise_alert