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Friday 28th of August 2009
August 24, 2009    

Rate rise will hit homeowners “like a rock”

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by David Masters
Rate rise will hit homeowners

Homeowners on tracker mortgages will be “hit like a rock” when interests rates rise, a financial expert warned this week.

David Kuo, director of the Motley Fool financial news website, Fool.co.uk, said “prudent” customers should continue making monthly repayments at the same level as they were before interest rates plummeted.

By maintaining repayment levels mortgage holders will be reducing their debts and will reap the benefits in the future, Kuo claimed.

“Keep paying what you have always been paying on your debts and mortgages,” he said.

“When the interest rate does eventually go back up it will hit you like a rock”.

Earlier this month, the Bank of England held interest rates at a record low of 0.5%.

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