Refinance Fears Over Looming Rate Hike

Friday May 04, 2007

Millions of homeowners could be forced to remortgage their property if interest rates go up as expected, it has been claimed.

Research found that 14% of households feel they would have to refinance their loan if a rate rise boosted mortgage repayments by up to £50 a month.

The figure represented about 2.6 million homeowners across the UK.

Around 40% would have to remortgage if monthly repayments went up by £100, survey results indicated.

Around 2,300 British adults were interviewed as part of study by price comparison website moneysupermarket.com.

It revealed a quarter of mortgage holders hit by the last interest rate hike said they were financially stretched, struggling with repayments or having to sell or remortgage to keep afloat.

The Bank of England is expected to announce a further rate rise next week, with most commentators expecting a 0.25% increase.

Source: http://news.sky.com/