Daily Telegraph: According to research by Which?, the consumer group, 70pc of mortgage-holders are concerned about an increase in interest rates. More than a million home owners will see the cost of their mortgage payments increase today as several lenders raise standard variable rate (SVR).
Three quarters of mortgage-holders told the group that they would be affected if their repayments increased by £50 a month, with 41pc saying they would need to cut back on regular spending, 20pc reducing savings and 11pc not having enough for essentials.
An increase of £100 a month would see 20pc of mortgage-holders not having enough for daily essentials such as food and 11pc being unable to pay their mortgage. Consumers also highlighted the emotional impact of increases in mortgage repayments, describing them as “devastating” and “a disaster”.
Halifax is raising its SVR from 3.5pc to 3.99pc, affecting 850,000 home owners. Borrowers revert to paying an SVR when their fixed rate deal ends.