Interest rate rises could leave 1 in 3 homeowners in debt warns FSA

The Financial Services Authority has warned that by raising interest rates by as little as 2 percentage points 1 in 3 homeowners would struggle to keep up with their repayments. The body warns that even a small increase in interest rates would deem 1.6 million UK mortgages "unaffordable". The concerns come as the Bank of England considers raising interest rates from the current low of 0.5% to ease inflation, despite recent estimates showing the UK economy grew by just 0.5% in the last quarter.