Joint chief executive at the Hunters Property Group Kevin Hollinrake told the York Press that repossessions will result if the Bank of England opts to raise interest rates next month, a move he views as “extremely likely”.
Credit consumers across the country will find it increasingly difficult to clear debt in the event of a rise in the cost of borrowing and for many in North Yorkshire it would be enough to lead to their home being repossessed, Mr Hollinrake suggests.
“Inflation has now reached its highest level in more than 14 years and it seems almost certain that we will see an interest rate rise next month,” he is quoted as saying.
“This is bad news for anyone with a mortgage and could even lead to a further rise in home repossessions.”
According to the Consumer Credit Couselling Service, British homeowners look set to be on the debt management rack for the entire of 2007.