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Further rate rises could spell danger
16/08/2007

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Rising interest rates are forcing homeowners into taking in lodgers.

That is according to new research which shows that many people in the UK are struggling with mortgage payments.

The base rate currently sits at 5.75 per cent and a large number analysts predict that it will reach six per cent before the year is out.

Findaproperty carried out research which found that 24.6 per cent of homeowners are interested in getting a lodger but a further 19 per cent are interested but do not have the option.

This means that if the base rate does rise again, thousands of people could find themselves unable to keep up with mortgage payments.

Financial analyst Global Insight recently predicted that the Bank of England would increase rates in October but some experts are warning of the chaos it could cause.

Julian King, director of National Homebuyers says: "The housing market is extremely unsettled and homeowners are under huge strain.

"Current and future affordability is such a major concern to the homeowner.

"Those who are currently experiencing difficulty are contacting National Homebuyers to buy their house quickly so that they may pay off any increasing debts."

National Homebuyers are the UK's leading fast property purchase company, guaranteeing to make a formal offer to purchase any property, regardless of condition or location in the UK, for vendors who need a quick sale.

"Homeowners who see that the value of their property is falling because of the lack of buyers' ability to get on the ladder are also considering their home sale options," says Mr King. ADNFCR-1046-ID-18247330-ADNFCR

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