(1888PressRelease)
May 13, 2007 - Research by online mortgage company mform suggests one in seven Britons - or 6.5 million people - will struggle if rates are raised to 5.5 per cent.
Meanwhile, if a hike of 0.5 per cent is effectuated - upping rates to 5.75 per cent - one in five is expected to be plunged into financial crisis.
"A Bank of England rise from 5.25 per cent to 5.5 per cent will take interest rates to their highest level for six years. And there is no guarantee that a 0.25 per cent rise will be the last this year," commented Eamonn Rice, mform's chief executive.
"Borrowers have got used to low interest rates and many haven't adjusted to the fact that we may now be entering a period of higher rates. Anyone who hasn't acted in the face of the three Bank of England rises since last August should start now."
Britons living in London and the north of England are most worried about the effects of a rate rise of 0.25 per cent the survey revealed, while Scottish dwellers are the least concerned.
Leading property company National Homebuyers says that these figures are 'conservative' to protect the consumer. "We predict a 0.5 per cent rise in rates this month," says director Julian King.
"There is evidence to suggest that over the coming 12 months, homeowners should be prepared for rises up to 7.5 per cent and this will prove disastrous.
"Compounded with increasing consumer debt, stagnating property market and the problematic introduction of Hips, we predict that many, many more people will be seeking alternative ways of selling their property quickly before the end of the year."
National Homebuyers is the UK's leading provider of quick sale and sell and rent back property solutions.
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