A financing analyst has acknowledged that many mortgage holders may be struggling to make ends meet as a result of the recent base rate decision.
On May 10th 2007, interest rates were raised to 5.5 per cent by the Bank of England's monetary policy committee - their highest level in six years.
Moreover, it represents the fourth time in under a year that the Bank has increased the base rate by a quarter of a percentage point.
Adrian Coles, director general of the Building Societies Association, acknowledged that the latest decision may be a rise too far for some mortgage holders.
"For people on variable-rate mortgages, the increase in the interest rate will see their mortgage payments rise," he said.
"For some, especially people who have also taken out personal loans or credit cards, this could mean a problem paying the mortgage."
It is thought that one of the reasons for the Bank's move is to try and cool down the UK housing market.
Earlier this year, financial services provider Nationwide Building Society reported that annual house price inflation had reached 10.2 per cent.
Financing analyst admits mortgage holders may struggle
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Financing analyst admits mortgage holders may struggle
Fri, 11 May 2007
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