The Council of Mortgage Lenders has issued, in our opinion, solid advice to homeowners in that they should look to try and ride out current and future interest rates and avoid repossession traps.
The CML is delighted that mortgage arrears and repossessions is at its lowest rate for twenty years.
Our view
Indeed simple, but solid, advice. We expect interest rates to increase again around November with a further two increases in the first half of next year before starrting to fall back again.
Therefore, if you are expecting to struggle, try to adjust now. Start to make cutbacks so that you are ready for any increases. Perhaps safe a few pounds a week to deal with the extra £10, £20 or £30 a month increase that you may face if rates do increase.