BBC News – Home owners could cope with rate rise, says Bank

[Legal Beagles]

The majority of people with mortgages could cope with a rise in interest rates, the Bank of England has said. Just 4% of mortgage holders would need to take action if interest rates rose to 2.5% from their current 0.5% historic low, according to the Bank’s annual survey of household finances. However, the calculation assumes […]

More...

[PAWS]

Re: BBC News – Home owners could cope with rate rise, says Bank

However, the calculation assumes a 10% rise in household incomes.

And there lies the problem!

If incomes did not rise, it said, 37% more mortgagers would need to act in response to a rate rise.

Need to act –in what way exactly. Start crying or praying?
It is true that rates have been abnormally low for a very long time and naturally that cannot continue indefinitely. Low rates have also increased demand and helped to drive up the cost but with so many repossessions happening every day and many companies being unable or unwilling to award annual pay rises the number of people being thrown out of their homes is going to soar.