It has been suggested in a recent report that some homeowners that are making mortgage repayments may end up needing some form of financial advice and assistance in the near future as a result of possible increases in mortgage interest rates, which could send monthly mortgage repayments through the roof for those on variable rate loans.

Earlier this month many heaved a sigh of relief when the Bank of England announced that following the February Monetary Policy Committee meeting the base rate was being left on hold for yet another month at its all time low level of just 0.5 percent. This is the 22^nd month that the rate has been at this record low, and is another month of extra breathing space for homeowners with variable rate mortgages.

However, whilst the base rate has remained static for the moment many believe that it will go up in the near future, possible in April or May. With the level of inflation so high the rate could end up rising on more than one occasion this year, which could lead to mortgage repayments rocketing in some cases. For many this could tip them over the financial edge, and could lead to increased risk of repossession through late and missed mortgage repayments.

Once mortgage repayments go up many homeowners could find that they are no longer able to stretch their money far enough, and could end up either falling short on the mortgage repayment or unable to meet other financial commitment such as unsecured debts. This will result in more and more people seeking advice from debt experts in order to stay afloat financially. The situation could be made worse by the government cuts coming into force and by job losses resulting from these cuts.