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06/07/2007 Ouch! Mortgage Rates Rise 31/07/2007 Buy to let market still strong 01/08/2007 Bank of England financial news contributors will soon be required, keep an eye on this page
The Bank of England has just announced an increase in the cost of borrowing to a whopping 5.75%, this could spell disaster
for many homeowners as mortgage repayments soar in line.
Homeowners with particular cause for concern are those who will be coming to the end of their fixed rate loan term. This group may suddenly find themselves seriously out of pocket
as they are forced to confront the variable rate, even a new fixed rate arrangement will attract higher repayments.
Charities and housing organisations may be gearing to deal with a possible flood
of enquiries from concerned homeowners, particularly those with families. It is
now calculated that there are situations where over 37% of a household's budget
is allocated to servicing the mortgage..
Sadly for many people the increasing burden of debt will inevitably lead to their losing their home, perhaps even entering into some sort
of debt arrangement. The possibility of bankruptcy will also loom over many who seriously over committed themselves in the hope of
cashing in later.
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