| Topic: | Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England | |
| Posted by: | Joe Conneely | |
| Date/Time: | 26/07/15 14:58:00 |
| I saw a business news letter today which stated the Bank of England reports that if interest rates rose by two percentage points and household incomes by 10%, the proportion of households with unsustainably high mortgage-debt-servicing costs would rise from 1.3% to just 1.8% - far below previous peaks seen in the UK over the decades with major rises. While 10% increase in household incomes may cause some disbelief or bemusement in W4, the inevitability of rate increases do seem to be getting priced in by the futures market, which currently reflect that there will be a projected 1% rate rise by late 2016. |