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 The rise in interest rates could have serious implications for mortgage-holders if the upward trend continues, some experts are warning.
After five rate rises in the last 12 months, which have pushed the base rate to 5.75 per cent, the monetary policy committee (MPC) has left further increases on the agenda.
In the latest MPC meeting, the minutes revealed only three members of the MPC felt a rate rise was not necessary.
Now some property analysts are predicting that low-interest mortgages could come under pressure, with those homeowners already in debt potentially facing a tough time.
One banker, speaking to the Times in light of the latest actions by the MPC, warned: "Bad debts for mortgages have been at an unsustainable low for too long."
"The market is now getting a lot more realistic. It’s a ticking timebomb," he added.
Earlier today the Ernst & Young ITEM Club Summer Forecast predicted Britons would be facing a period of 'belt-tightening' as rate rises and an increased tax burden put mortgage-holders under pressure.
Julian King of National Homebuyers says, "It's a given that the further rate rises will help slow the economy. However, the effect on the homebuyer and homeseller of this is of concern".
King is a director of fast buy property firm National Homebuyers, he says "Although a calming of the economy is essential, it's the effect this has on the homeowner that is of the biggest concern.
"The high rates of interest mean that may potential buyers are priced out of the market and ultimately homesellers who are looking at a good profit for their property will find it difficult to find a buyer before this bubble bursts."
Earlier today the Ernst & Young ITEM Club Summer Forecast predicted Britons would be facing a period of 'belt-tightening' as rate rises and an increased tax burden put mortgage-holders under pressure.
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