BoE Governor Mark Carney had laid down clues as of
late about the bank possibly increasing interest rates by the end of the year. The
Money Advice Trust is right to say that people must organise their finances and
prepare for a possible rate rise in the next few months. They warn that people
only have a "short window" to organise their finances.
Millions of mortgage holders owned a home as rates
fell to historical 0.5% in the last three years.
Meanwhile, Mr Carney has yet to announce the exact
time the bank will increase the interest rates. He said it could not be
predicted in advance because economic data is still insufficient. Economic
analysts believe that it may increase rates during springtime.
Most mortgage holders may face extra costs once
interest rates increase. Home loan holders could hit as soon as their current
deal during the 'Help to Buy' era has expired. Analysts also find that renters
will also find trouble with the increase because private landlords will pass on
the costs of paying for the properties and mortgage through their tenants.
Money Advice Trust calls on homeowners and the entire
United Kingdom to be worried about spending and take a safety-first approach on
debt to avoid any trouble.
