Just a single percentage point rise in interest rates would be enough to force nearly 10% mortgage-holders to take drastic action so they could afford debt payments, such as cut essential spending or earn more income (for example, by working longer hours or a second job ) in order to afford their debt payments the Bank of England has warned – while a two point increase could affect those holding around 20% of mortgage debt.
Bank Deputy Governor Paul Tucker said: "If interest rates were to rise without an improvement in income, the debt servicing burden would increase."
Bank Deputy Governor Paul Tucker said: "If interest rates were to rise without an improvement in income, the debt servicing burden would increase."
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