The Bank of England’s Monetary Policy Committee convened yesterday for the first meeting of the New Year. With the base rate increase hanging in the balance, the committee met to determine if conditions met the appropriate criteria to mandate a hike. This hike has been anticipated since the Central Bank made its public announcement last summer and many residents are expecting it sometime this year. Many experts predict the increase will not take place until at least the beginning of the third quarter of this year.

Households across the country have been expecting the increase for six months with no decision yet from the Bank of England. Although news of the increase has been in the air for months, a recent survey indicates many home owners are unprepared for higher monthly mortgage payments.

Almost 75% of home owners will likely see an increase in their mortgage payments if a hike in base rate takes place. One out of every five is clueless as to how even a minor change could impact their monthly payments. This data is startling to many close to the housing market, but even more shocking is the number already distressed with their current situation. More than half already see challenging times each month making all payments on time.

Ian Ramsden, Director of Mortgages at TSB, commented on the latest data, saying: “The statistics included in TSB’s report are fairly shocking and clearly there’s a lot of work to be done to help Britain’s homeowners understand how they can accommodate a rate rise.  But there is no need to panic; a little bit of planning now can make a big difference in the future.

“We don’t know when the Bank of England will change the base rate, but we do know preparing early and helping homeowners understand their options is the first step in helping Britain get #ReadyForRateRise.”