Homeowners 'Must Prepare Now For an Interest Rate Rise'

Borrowers must prepare now for a rise in interest rates, a charity says, with over a million homeowners never having experienced a Bank rate increase. Mark Carney, the Bank of England governor, said that a rise in the Bank Rate was "drawing closer". The Money Advice Trust said this offered only a "short window" for people to organise their finances. More than a million mortgage holders have only ever owned a home when rates were falling or frozen at 0.5%. The last rise in the UK Bank Rate was an increase to 5.75% in July 2007. About 1.8 million homeowners have taken out a mortgage for a new home since then although some would have owned previously then left the market. Read more on the BBC website.

Rent Arrears the Fastest Growing UK Debt Problem

National debt advice charity the Money Advice Trust reports that rent arrears are now the fastest growing debt problem in the UK.  The number of calls to the charity’s National Debtline service from people with rent arrears has risen significantly since the economic crisis first hit in 2007. From January to October this year, the free advice helpline received nearly 20,000 calls for help from people with rent arrears, compared with just 8,000 over the same period in 2007 – an increase of 146 per cent. Calls from people with rent arrears have increased 37 per cent over the last two years, and 13 per cent in the last 12 months – more than any other debt type. Additionally, figures suggest renters have faced a growing number of broader debt problems, with renters now accounting for 57 per cent of total calls to National Debtline, compared to 43 per cent in 2010. Read more on the Money Advice Trust website.