The Bank of England has once again made the brave decision to keep the current base rate at 0.5%. Another month at 0.5%, and another month of contentious discussion. Will this decision help the UK economy get one step closer to a stronger position, or just delay the inevitable struggles of homeowners, scrambling to keep their dwelling after rates start to rise?

Housepricecrash.co.uk posted a comment which puts things in perspective. It said, “I have to admit, I am enjoying this extended mortgage holiday… Been so long now and starting to forget what it was like to be hit with 1,400 pound a month mortgage. Going to be tough when rates go back up to 6%, although I doubt we will see 6% rates before my mortgage these are repaid in 2026.”

The reality of the low base rate remains the same for many homeowners. If you purchased a home in 2010, disposable income percentage for use toward your home is down from 48% in mid-2007, to only 29% this year.

The low base rate is not beneficial for everyone though, as senior citizens and those who have a lot in savings are just waiting for the base rate to increase. An increase in base rate will help interest rates go up for savings accounts and boost earnings. The base rate does not have to see a huge increase either. A small, 0.25% increase will mean millions of pounds difference across the UK.

Stephen Law, head of R3, discussed the impact of a rise in interest rates, saying: “I see many people who are concerned about their credit card debts as, worryingly, they rely on them for day-to-day purchases. Unfortunately I fear that the number of people worried about their levels of credit card debt is set to grow.

"The jump in the number of people worrying about their mortgage repayments may be due to the fact that, typically, the value of a mortgage repayment tends to be higher than the monthly repayment on a credit card. The higher value of this debt may make a mortgage repayment seem more difficult to pay each month.

"Many may be concerned that their repayments will increase when interest rates start to rise. People who feel that they are struggling with their personal debt should seek professional advice on managing their household budget as soon as possible."