Photograph by TaxFix
Borrowers face a mortgage rise of £252 per year on average if interest rates begin to rise a report by the Centre for Economic and Business Research (Cebr) has forecast.
The report for Barclays Mortgages predicts that average monthly mortgages could rise from £666 per month to £687 per month by December 2015, which would equate to £2.2 billion more in mortgage repayments across the country.
The Bank of England has maintained the record low base rate of 0.5% for the last five years to help the economy recover from the 2008 crash, but signs that the economy is finally starting to improve has caused many to predict a base rate rise over the coming year. The Cebr forecast predicts a gradual base rate climb to 0.75% in May 2015, to 1% in August, before reaching 1.25% in November 2015.