Last week the Bank of England gave a stark warning that any rise in interest rates would cause more homeowners to face a repossession order as mortgage repayments would become more difficult to make. Thanks to low interest rates, the cost of running a home in the UK has dropped significantly which as kept the number of nationwide repossessions in check.
The reduction in costs over the past two years has seen a 19% drop in annual mortgage payments, with the Bank of England taking interest rates to the all-time low of 0.5% back in March 2009. Its annual Financial Stability Report , the Bank of England noted that mortgage payments have only continued to be affordable in many homes because of the low rates.
