An end to recession means an end to cheap mortgage payments
21 August 2009
As the recession eases and the mortgage market begins to recover it will mean an end to the low base rate of interest and cheap mortgage payments.
That is the stark warning from David Kuo, director of financial website Fool.co.uk, who noted that those who have lowered their payments with the fluctuations in the Bank of England''s (BOE) base rate may find themselves feeling the force of a recovery.
He said: "When the interest rate goes back up again these people will suddenly be inundated with massive increases in their monthly mortgage repayments.
"My message to the people has been to keep paying what you have always been paying on your debts and mortgages because when the interest rate does eventually go back up it will hit you like a rock.
The BOE announced on August 6th that it would maintain the base rate at an historically low 0.5 per cent and also invest a further £125 billion into asset purchase and quantitative easing.
By Christian James
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