Savills Private Finance has responded to concerns about consumer debt by enhancing its mortgage illustrations to show the effect of potential interest hikes.
The company has updated its computer system to provide would-be clients with standard illustrations for every mortgage proposal to show in pounds and pence what a borrower'smonthly loan repayments would be should rates rise.
The new feature allows the client to see not only the monthly repayment costs at the initial rate, but also shows a projected monthly repayment figure at 6.5% and 7.5%.
Mark Harris, managing director at Savills, says: “A lot of people are forgetting that rates are low at present. For some, if there was a rise they could find themselves in a difficult situation, struggling to make the monthly payments.
“Hopefully when clients see the repayment figures at the higher percentages, they will take into consideration that although they may be able to afford the monthly repayments on their new low rate they will need to be sensible with their spending just in case there was a rise in the future.”