Milan Khatri, chief economist at the Royal Institute of Chartered Surveyors (Rics), commented that an increase next month – and with it an increase in debt repayment for mortgages linked to the rate – is “firmly on the cards”.
He stated: “The Bank of England’s decision to leave interest rates unchanged today is unlikely to be repeated next month when a quarter point increase is firmly on the cards.”
He pointed to consumer finances and “positive momentum in the property sector” for contributing to the economic drive that is likely to result in an interest rate increase.
With expectations of a rate rise, many consumers may wish to take out a debt management plan now.
Otherwise, an increase in monthly mortgage repayments could result in many people risking repossession.
Earlier this week, the Debt Counsellors warned that many Britons have “unmanageable” debt and a change in circumstances, such as an increase in mortgage repayments, could hit them hard.