Further interest rate rises are ‘clear’

Interest rates are ‘certain’ to rise again later this year, an industry expert has suggested.

According to Martin Ellis, Halifax chief economist, minutes released by the Bank of England today indicating all nine members of the monetary policy committee voted to raise the base rate this month could mean future increases will take place.

With any rise to interest rates likely to increase many consumers’ monthly repayments on Secured Loans and other forms of borrowing, some of the most financially vulnerable people in Britain could struggle with debt management.

Mr Ellis told the Mirror: "This is the clearest sign yet that there is going to be another increase in the next few months."

He suggested that further rises could take place as the bank is concerned about rising inflation rates over the next few years.

Meanwhile, a Nationwide spokesperson added that consumers should be conscious of how predicted interest rate rises may affect their finances, "particularly those thinking about stretching themselves to get a first home".

Earlier this week, Stephen Leonard, director of mortgages at Alliance & Leicester, claimed borrowers are beginning to feel the effects four interest rate increases over the past year on their ability to make secured loan repayments.

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