Debt warning for homeowners

According to John Charcol, anyone with a mortgage or loan linked to the interest rate should start their debt management now as a rise is likely, increasing the amount of repayments required each month.

Ray Boulger, senior technical manager at the mortgage broker, said: “While an interest rate rise is never good news for homeowners, those who are still on their lender’s SVR [standard variable rate] will be hit particularly hard, yet have the greatest opportunity to do something about it.”

He said that one form of debt management is for homeowners and those on a loan to shop around and consider looking at other providers.

Homeowners were also urged to ensure that they have the funds to meet an increase in monthly debt, as the monthly repayment increase could be significant to many.