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Rate rise could spell disaster for struggling home owners - News
04/08/2006 - The quarter per cent rise could see more people filing for bankruptcy as house hold bills soar
The unwelcome news of a rise in the Bank of England Base rate could mean that many more homeowners face repossession and hardship as they struggle under the weight of the cost of living. The rise to 4.75 per cent will mean that many more people could be joining the ranks of the 27,000 people who went into insolvency in the months from April to June this year.
The rise, the first in two years, will add further hardship to people as their disposable income further shrinks after the price increases in household fuel (28 per cent), the cost of petrol (12 per cent) and water (5 per cent). The rise will mean that if you have currently a mortgage of £150,000, the rise will add a further £21.50 to your monthly repayments. Housing apecialists are now worried that the rise could stifle the property market