Interest Rates Will Impact Homeowners

Homeowners need to be aware that interest rates will rise at some point in the coming months, and turning a blind eye to the situation will not help their cause, one expert has pointed out.

According to Zoopla, Ed Stansfield, property economist at Capital Economics, said that some householders need to prepare for mortgage repayments to rise in the months ahead if and when the Bank of England's Monetary Policy Committee decides to raise interest rates.

His comments follow the publication of a report by the Federation of Small Businesses, which called on the Bank of England to keep the base rate at 0.5 per cent until at least the third quarter of this year to avoid making the economy unstable.

Mr Stansfield noted that he does not envisage interest rates rising in the very near future, but urged homeowners to be ready for it when they do.

"Clearly in the medium term, anyone who is thinking about buying anything on credit whether it is a house, a car, a fridge or whatever needs to recognise that we are at an exceptionally low level of interest rate," he added.

The expert said that just because people can afford repayments on items and mortgages at the present time, it does not mean this will be the case forever.

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