Mortgage borrowers may face a number of problems if the base rate suddenly rises, according to an industry expert.
Chief executive officer of Firstrung Paul Holmes believes that this increase will not happen in the near future, as the consequences of it happening could be dire.
"It would be an awful lot for people to cope with, particularly in terms of unemployment, less working hours, et cetera. [It] could push the economy over the edge," he continued.
Mr Holmes suggested that if interest rates rise, then so does the amount paid on mortgages and the number of properties that are repossessed.
In turn, this would lead to more bail-outs, which can simply not be afforded at the moment, the expert added.
This follows the publication of figures from the Council of Mortgage Lenders, which revealed that last month approximately £11.1 billion of funding for mortgages was allocated. |
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