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Homeowners warned of interest rate changes

 

The Money Advice Trust has warned that recent implications by Bank of England (BoE) Governor Mark Carney, about a possible interest rate rise, could have a serious impact on homeowners.

 

The Trust, which aims to help people manage their money and debts, said that individuals with mortgage debts should prepare for extra costs once the rates rise.

 

Jane Tully, Head of Insight at the Trust, said: ‘There remains only a relatively short window for households to prepare for the impact that higher interest rates will have on their finances.

 

‘Rising interest rates will affect renters too, as many private landlords will pass on their higher mortgage costs to their tenants.

 

‘Households need to look at their finances now, to make sure they can absorb these extra costs. Crucially, now is the time to act if you are worried about your ability to meet your repayments’.

 

Mr Carney has said that an interest rate rise could not be ‘predicted in advance’ but recently made mention that a change in the rates was ‘drawing closer’.