Wednesday, August 3, 2011

Rate Rise Would Cost Families £500 A Year, Economists Warn


Raising interest rates would leave millions teetering on the brink of financial disaster, leading economists warn today.
The National Institute of Economic and Social Research says a rise from 0.5 per cent to 1 per cent would leave the typical familiy with an extra £516 a year to find for its mortgage repayments.
In total, such a move would cost households a staggering £3billion next year alone. An increase to 1.5 per cent would cost them £6billion. Any rise would put a dangerous dent in disposable incomes after two years of decline, warned NIESR economist Simon Kirby. ‘Household incomes continue to fall in real terms and remain vulnerable to . . . . . .

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