Citizens Advice calls for rate rise warning
Last week the Bank of England Governor Mark Carney hinted that the first base rate rise could occur at the end of 2015.
Gillian Guy, chief executive of Citizens Advice, said: “Households need time to adjust to an interest rate increase.
“Historically low interest rates over the past six years have made it easier for people to manage their finances. A rise in rates will make things harder for those already struggling, and push those who are just about managing over the edge.
“Our evidence shows one in five homeowners will fall into arrears when interest rates rise.
“To limit the pressure on families’ budgets, any rises in interest should be slow, steady, and come with plenty of warning. Access to money and debt advice will be essential to help prevent large numbers of people falling into problem debt.”