People paying off large mortgages could be at risk if interest rates increase, according to the Office for National Statistics.

Households in the UK could face huge problems if the mortgage interest rates go up, which experts believe could be in 2017. If rates return to the high levels previously experienced, homeowners could face considerable distress. Experts believe the UK economy could also suffer following an interest rate rise. According to ONS, during 2013, one in every eight households had outstanding mortgage debts equivalent to 4.5 times their income.

This percentage has only slightly fallen, which the chief economist at Resolution Foundation think tank, Matthew Whittaker, believes is “concerning”. He added:

“With rate rises back on the agenda it’s vital that banks engage with their customers to explain how their mortgage repayments could rise.”

Of those households with large mortgage debts, a quarter live in London, while another quarter live in south east and east of England. Experts fear that GDP could be affected by interest rate rises, as mortgage costs increase. With the availability of cheap mortgage products and the increase in house prices, some home buyers may have borrowed more than they can comfortably repay if rates increase.

To avoid potential problems with repayments, it is advisable to speak to a mortgage adviser who has the knowledge required to help you secure an affordable product. Mortgage advisers undergo CeMAP training so that they have the crucial information to be able to help borrowers.

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