To portray a balanced perspective, let’s briefly explore who the rise in interest rates would please; creditors, financiers and savers. And of course, that all too hazy political agenda.
However, the rise in interest rates will be detrimental to the British debtors, who the government should remember are also voters. They are the ones who will be hurt by a rise in debt-servicing costs.
According to the most recent Financial Stability Report from the Bank of England, the debt-to-income ratios remain at historically high levels.
And the reality is, as any political manifesto should understand, we are in an era of stagnating incomes.
And with a government and banks who are not inclined to deleverage, restructure or write off debt since the financial crisis, the future looks more than bleak.
A spokesperson for Rescue My Properties, a company that specialises in mortgage debt said,
“After five years of austerity, too many people in the UK are still in debt. And the government is in no rush to figure out a way of reducing our debt burden, negotiate it now and prevent a financial meltdown when rates do rise.
“If we wait till interest rates rise, it will be disastrous for homeowners. We will see a situation of history repeating itself.
“Rescue My Properties has helped over 3000 clients in the past 5 years deal with their property related problems and get rid of crippling debt.”