When interest rates rise mortgage payments will rocket.
Mortgage payments could surge if interest rates return to their normal level.
People buying a new home may be forced to spend over half of their take-home pay on their mortgage once interest rates rise, according to specialists.
The current 0.5% interest rate will return to around 5% in the coming years, which means mortgage rates could rise to 8%, experts at Capital Economics have warned.
For people buying a new house their mortgage repayments could rise by 17% to a massive 51% of their average take-home pay. This works out at about £12,000 a year for people on a gross salary of £31,500. For people who already have a mortgage the figure could reach 42%.