While there are currently many mortgage holders n the UK who are at breaking point, would you be able to cope with another rise in mortgage rates? As the financial crisis continues across the world, we may soon be in the strange situation of seeing base rates fall and mortgage rates increase.  Would you be able to cope?

There are obvious concerns about the financial stability of some mortgage holders in the UK, many of whom will see the value of their homes fall in value over the next 12 months.  While the majority may have sold up and down sized in the event of any major problems, this may not actually be enough for some.  So what can you do?

Rather than sit back and wait for any changes to happen, you should really be carrying out your own “stress” tests to see what your finances could cope with, and where you could possibly make future savings.  While savings will be hard to come by, bearing in mind the ever increasing cost of living, you may be able to trim some fat off the edges, although it will not be easy.  However, would you not rather be ready for a worst case scenario, than wait for the mortgage increases to fall through your letter box, then panic?

Unfortunately, there are forecast to be thousands of mortgage holders coming off their introductory fixed rates over the next few months, with some set to see their payment more than double.  Saving a few pound here and there is possible, but getting your head around a doubling of your payments, well that is something else!