Although the Bank of England announced on Thursday that interest rates are to remain at 4.5 per cent, most analysts are expecting a rise in the rate later this year, which would particularly hit those on a variable mortgage.
“The people it would have the most impact on are people who are on variable mortgages,” warned a Citizen’s Advice spokesperson.
Any rise in the rate would increase the amount of money that those on a variable rate mortgage or loan would have to repay.
As other major central banks, such the ECB and the USA’s, have already raised rates this year, the Royal Institute of Chartered Surveyors expects the Bank of England’s 4.5 per cent to also rise.
When this happens, consumers on a variable rate mortgage must expect to pay more each month and prepare for the extra debt they will have to repay each month, the experts warn.