Millions of mortgage borrowers are at risk of financial hardship when the Bank of
According to the study by the
The Bank is set to raise base rates gradually to 3% over the next couple of years, after keeping them at a historically low 0.5% since 2009. The report will warn that borrowers across the
The report recommends that the regulator, the
Household debt has fallen since the financial crash from around 175% of gross domestic product to 142%, leaving an overhang of pounds 1.5tn. This is expected to rise to pounds 2.2tn by 2018. Much of the debt repayment since the crash has been done by older, better-off borrowers, leaving families and many single people exposed to increased repayments as interest rates rise - either because they are among the near two-thirds of existing borrowers on variable-rate mortgages, or because they are on fixed-rate deals due to end within the next two to three years.
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