I agree that interest rate rises will be slow and gradual. The MPC need to be seen to do something but wouldn't do anything to rock the boat. In terms of creditors, I think they will be fairly sympathetic as rising numbers of repossessions could be a reputational disaster. Imagine the headlines in the Daily Mail - refusing to offer fixed rate products and then repossessing homes when people cannot afford the variable rate mortgages their banks forced them to accept. Besides, I hardly think they want a lot of worthless properties on their books at the expense of a steady income! Commercially it makes sense for them to be sympathetic and that's the best guarantee they will be! Plus they'll have to go toe to toe with Mel if they aren't helpful and I don't fancy their chances!!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thankfully we're only 18 months into a 5 year fixed rate. We're paying more at the moment than if we were on SVR, but it could work in our favour if rates rise.
