Mortgage advisers 'must be prepared' for interest rate decision
07 September 2010 at 15:24
Mortgage advisers need to ensure they are ready for any changes to the Bank of England's base interest rate after the Monetary Policy Committee meets this Thursday (September 9th).
That is the opinion of Bob Riach, from Riach Independent Financial Advisers, who believes rates will "probably go up" before the end of the year, likely rising by one per cent.
He alerted advisers that borrowers on a tracker mortgage could see their interest rate rise in line with any base rate increase, adding that if rates go up and incomes do not, some people are going to be under pressure.
"We could see arrears and repossessions getting worse. Borrowers should move to a new fixed rate deal if they think variable mortgage rates will rise in due course," Mr Riach added.
The last time the Bank made the decision to alter the base interest rate was on March 5th 2009, when the rate fell by 50 basis points.
Posted by Tony Miller