Have a question?
033 3772 0409

Housing Solicitors

Poll finds more than one-third of homeowners would struggle if interest rates rise to 2% (12 November 2014)

Date: 12/11/2014
Duncan Lewis, Housing Solicitors, Poll finds more than one-third of homeowners would struggle if interest rates rise to 2%

Figures from market research agency ICM suggest that once mortgage interest rates rise to 2%, one-third of homeowners would struggle to repay their mortgages every month.

The International Business Times (IBT) reports that homeowners in the southeast of the country are those most worried about interest rate rises and whether they will be able to meet monthly mortgage repayments.

ICM researchers questioned 2,050 homeowners between 5 and 6 November this year and found 39% said they would “severely struggle” to meet mortgage repayments if they rose to 2%.

On the basis of a homeowner having a mortgage of £100,000 at 2.5% variable, a 2% interest rate hike would mean and extra £100 per month on mortgage repayments.

Interest rates have been kept steady at 0.5% by the Bank of England since 2009, following the banking crisis of 2007 and subsequent credit crunch.

However, there has been intense speculation over when interest rates will begin to rise again, with Bank of England Governor Mark Carney being accused of sending conflicting messages about when interest rates might rise.

Many first-time buyers have bought under the government’s Help to Buy scheme, which enables homebuyers to buy properties up to the value of £600,000 – with small 5% deposits and part of the mortgage underwritten by the government.

However, the Bank of England has called for the upper limit of Help to Buy to be reduced – and even halved to £300,000 – to prevent first-time buyers from overextending themselves financially.

The price of the average house in the UK is now £274,000, however – and there is intense competition among homebuyers for affordable homes.

It is not thought interest rates will rise until mid-2015 at least, following the May 2015 general election.

Duncan Lewis Housing Solicitors

Duncan Lewis is a leading firm of housing solicitors and can advise homeowners on debt management and mortgage repossession.

Duncan Lewis is also a leading provider of Legal Aid services.

Duncan Lewis housing solicitors also offer competitively priced conveyancing services to homebuyers.

For expert legal advice on mortgage repossession and housing matters call Duncan Lewis housing solicitors on 020 7923 4020.


For all Housing related matter contact us now.Contact Us

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is 143-149 Fenchurch St, London, EC3M 6BL. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.