Planned interest rate rises by the Bank of England could cause 22,000 homeowners to fall behind on repayments according to new news from the head of the UK Asset Resolution (UKAR) chief executive, Richard Banks.
Raising interest rates by as little as 1% could push thousands into mortgage arrears, new figures show.
Mr Banks said: “If interest rates rise the impact on our customers depends on how quickly they rise.”
His comments are in the same vein of the outgoing deputy governor of the Bank of England, Charles Bean, who recently said the bank of England base UK interest rate could rise to 3% in a few years’ time. He expects rates to rise this year.
Mr Bean predicted the Bank of England’s base rate would reach reach 3% between 2017 and 2019.
At the last meeting of the Bank of England’s Monetary Policy Committee on the 8th May, members appeared to be shifting their opinions towards raising interest rates.
UKAR are still trying to run down loans of Bradford and Bingley and Northern Rock from the last crisis.
UKAR has 467,000 customers and 529,000 mortgage accounts along with outstanding debts to the government of almost £30bn.
All this news paints a picture of a government at war with reality. According to them the economy is booming and interest rate hikes a necessary evil. The grim truth is that this country is merely a dressed up “Zombie Economy” waiting to give the public a fright.