BSA: Mortgage payers should seek help if rate rise hurts

BSA: Mortgage payers should seek help if rate rise hurts

BSA: Mortgage payers should seek help if rate rise hurts

Commenting on today’s decision by the Bank of England’s Monetary Policy Committee to increase the Bank rate, the BSA’s Director-General, Adrian Coles, said;

“Consumers should not panic as a consequence of this rise, but should try to assess how it will affect their finances. For people on variable rate mortgages, the increase in the interest rate will see their mortgage payments rise.

“For some, especially people who have also taken out personal loans or credit cards, this could mean a problem paying the mortgage.

“If this is the case then they need to contact their building society as a matter of urgency. When they do, they will find a sympathetic response and help to get their finances sorted. This could include rescheduling their repayments. Talking to your building society is particularly important as further rate rises are still a possibility.

“Not paying your mortgage can put your home at risk. Building societies want to avoid this if at all possible.

“For the 55% of building society mortgage holders who have a fixed rate product, the rate rise will make little immediate difference.”

FURTHER ADVICE
Further advice on what action people should take if they think they might have difficulties paying their mortgage can be found on the BSA Website (www.bsa.org.uk/consumer/factsheets/arrearsfactsheet.htm).

LOOKING AHEAD
Activity in the housing market is likely to cool as 2007 progresses. Interest rates have been rising since August last year and the cumulative impact of these increases are still feeding through now. Today’s announcement will have an added dampening effect on the market.

Notes to Editor

1. The Building Societies Association (BSA) represents all 60 building societies in the United Kingdom. Building societies have total assets in excess of £310 billion and hold residential mortgages of almost £210 billion, approximately 18% of the total outstanding in the UK. Societies hold almost £200 billion of retail deposits, accounting for over 19% of all such deposits in the UK. Building societies also account for over 37% of all cash ISA balances. Building societies employ almost 50,000 full and part-time staff and operate through around 2,150 branches.

2. Photos of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
Don’t forget that the BSA’ s Annual Conference is being held in Bournemouth on 23 and 24 May 2007. Further details on the Conference are available at www.bsaconference.org