Forecast of rate rise may make flats to rent in London more popular
People may wish to seek property to rent in London rather than buying as a base rate rise could come soon push up mortgage costs, it has been warned.
Creative director at digital marketing agency Dallas Matthews Chris Jenkins warned there could soon be increases both in the cost of borrowing and utility bills, which in turn will put some homeowners "under increased financial pressure".
He added: "The combination of these increased outgoings could in turn lead to more repossessions."
People who have an agreed rental contract may be able to guard against changes in Bank of England monetary policy as this can stipulate a particular rental price until a given date, whereas many mortgages could rise within a month of a base rate hike.
Following news of a fresh rise in inflation this week, Bank of England Monetary Policy Committee member Andrew Sentance told BBC Radio 4 Britain's economy is moving into "a period where interest rate rises make more sense."
By Charles Mackay
Published 16th December, 2010
© 2010 Estates IT Limited
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Many homeowners could soon be vulnerable to losing their homes through base rate hikes and higher utility bills, it has been claimed.