Will there be a UK mortgage rate hike in 2012
Research shows consumers are preparing for a mortgage rate hike. A new survey has revealed that most home-owners are aware of potential mortgage rate increases, and are prepared and able to meet increased mortgage repayment demands.
The industry survey carried out at the end of 2011, also revealed that during 2011 mortgage repayments were at their most affordable for a decade and many home-owners remortgaged over the course of the year, to take advantage of the cheap mortgage rates on offer.
Banking experts are continuing to register their concerns over the number of repossessions that could take place if there is a mortgage rate hike, they feel many borrowers may not be able to meet their monthly payments. On a positive note, the poll revealed that 70 per cent of borrowers who were questioned, have a plan in place to help them afford any mortgage rate increases. These borrowers stated if rates were to rise they had enough room in their budget to cover the increase.
The survey also advised that despite experts warnings of a mortgage rate hike, most borrowers do not believe it will happen in 2012. There are some experts who share this view as some banking industry analysts predict the Bank of England will not actually change the UK base rate in until 2014.
