Most people with mortgages would be able to cope with an up to two percentage point rise in interest rates, a Bank of England survey finds.
The BoE’s annual survey of household finances, which forms part of the central bank’s quarterly bulletin, finds that just 4% of mortgage borrowers – some 1.3% of households – would have to cut spending or work more if interest rates were raised by two percentage points when incomes were rising.
Those with medium to high incomes would notice the most impact from an increase in rates, as they typically have the largest debt to income ratios.
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