Borrowers urged to plan for a rate rise
Borrowers were today advised to start preparing for a further interest rate rise before the end of the year.
The Bank of England's monetary policy committee (MPC) has implemented a succession of base rate rises during the past 13 months, which have left it at 5.75 per cent.
However, figures published by the Bank suggest the rises have not had the desired impact on consumer spending, as personal loan and overdraft borrowing has increased.
David Kuo of personal finance website Fool.co.uk believes another interest rate rise is imminent, which would mean increased monthly mortgage repayments for many people.
With that in mind, he advised borrowers to make overpayments against their mortgage ahead of any rate rise being implemented.
"Homeowners can always tip the scales in their favour by paying more than the amount due on their loans. That's because every pound overpaid now will decrease the loan rather than go towards interest payments," explained Mr Kuo.
A recent survey by Intelligent Finance revealed 41 per cent of people feel worried or extremely worried during the build up to the MPC's monthly base rate decision meeting.
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