Homeowners in thirties and forties warned of mortgage timebomb: New Bank governor says get ready for higher interest rates
Britain's record low interest base rate could be on the way out after more than four years at 0.5 per cent, the new governor of the Bank of England warned yesterday.
The introduction of a higher rate would be a blow to homeowners and firms used to cheap borrowing.
Canadian Mark Carney, who takes over from Sir Mervyn King on Monday, told ITV News a rise was on the cards, adding: ‘Without doubt they need to manage their business for the possibility of a slight or material change in the level of interest rates.’
Households that are heavily in debt could struggle with increased mortgage repayments and other loans if the Bank puts rates up, although savers would be delighted.
Sir Mervyn, who retires after ten years as governor, told MPs on the Treasury Select Committee: ‘It is clearly the case that with the prospect at some point down the road of higher interest rates it is not sensible to be in a highly indebted position.’
Mark Carney: Get ready for mortgage interest rate rise | Mail Online
Britain's record low interest base rate could be on the way out after more than four years at 0.5 per cent, the new governor of the Bank of England warned yesterday.
The introduction of a higher rate would be a blow to homeowners and firms used to cheap borrowing.
Canadian Mark Carney, who takes over from Sir Mervyn King on Monday, told ITV News a rise was on the cards, adding: ‘Without doubt they need to manage their business for the possibility of a slight or material change in the level of interest rates.’
Households that are heavily in debt could struggle with increased mortgage repayments and other loans if the Bank puts rates up, although savers would be delighted.
Sir Mervyn, who retires after ten years as governor, told MPs on the Treasury Select Committee: ‘It is clearly the case that with the prospect at some point down the road of higher interest rates it is not sensible to be in a highly indebted position.’
Mark Carney: Get ready for mortgage interest rate rise | Mail Online
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