Mortgage holders must be prepared for rate rise, says

Date:Friday 24th December 2010
Author: Max Freedman

Homeowners should be prepared for an interest rate hike in the coming year, according to a source from

Karen Barrett, chief executive of the website, pointed out that many commentators expect a rise in the base rate in 2011 after seeing it held at 0.5 per cent for 22 months so far.

She stressed how important it is for mortgage holders to be prepared for such a change and how it will affect household finances.

"Whatever your current mortgage position, it is vital for all homeowners to seek professional, whole of market advice on their mortgage so they are fully aware of the implications," Ms Barrett said.

The noted that a rise in the base rate will be warmly received by savers, but it is likely to have a less beneficial effect on mortgage costs.

Ms Barrett recently suggested consumers should do what they can to put themselves in a strong financial position for the new year, particularly since there are several major changes taking place in 2011 such as VAT increase and pension reform.