Bank of England base rate spells disaster - 04/08/2006
The bad debt crises could deepen as more people struggle to pay their bills
Interest rate rise could mean mortgage disaster - August News - Taylor Woodrow looks abroad for opportunities
The rise in the Bank of England base rate by one quarter per cent to 4.75 per cent is likely to cause problems for householders around the UK. The monthly increase in payments on an average mortgage of around £150,000, will mean an increase of £21.50 per month. The governor of the Bank of England, Mervyn King, had indicated this year that he was worried by an overheating housing market and the growing number of bankruptcies. The increase in insolvencies is a worry to economists who predict that if the current number of cases continues to rise at an equal rate, the year end figure could reach 100,000.
Property specialists have indicated that the quarter per cent rise could be disasterous for the industry as householders tighten their belts to pay for the increase in the cost of living. This year so far home owners have had to swallow increases in household fuel, petrol and water prices.
Interest rate rise could mean mortgage disaster - August News - Taylor Woodrow looks abroad for opportunities
