Anyone concerned about potential interest rate increases?

[Chocotrio]

Last year, there was some anxiety on this forum about the impact of the pandemic on house values. So far, the house values have actually gone up and it is looking ok for homeowners.

There are now some reports circulating about rising inflation and potential increases to interest rates to cool the housing market boom. Is anyone actually concerned? Are you or anyone you know getting by thanks to low interest rates? Or, have you budgeted in anticipation for potential interest rate increases? It is a worry for some people I know and I wondered how many others are in the same boat?

1. "The curse of inflation returns: Price rise rate surges by a third in a month to 2.1% - ABOVE the Bank of England's target amid fears economy's Covid bounceback could overheat and force interest rate hikes"

1. "Bank of England monitors UK housing boom as it weighs inflation risk"

1. "Future interest rate rise could crash the market, warns analyst"

A few articles are popping into my news feed about it.

I wouldn’t worry. They won’t change your interest rate by very much if they do raise it. It’s not like it will jump from the current 0.1% base rate to the 1981 15% base rate. Most likely it will stay under 1% as it has the past decade at least and have only tiny effect on mortgage repayments.

@PlanDeRaccordement

I wouldn’t worry. They won’t change your interest rate by very much if they do raise it. It’s not like it will jump from the current 0.1% base rate to the 1981 15% base rate. Most likely it will stay under 1% as it has the past decade at least and have only tiny effect on mortgage repayments.

Yeah. Makes sense. Otherwise too many people will be impacted. It would be a mess of epic proportions if the interest rates went up too much.

Yes, it would result in surge in foreclosures, homelessness, food poverty...worse than currently.

Plus I saw article wher the BOE Governor was pointing out that the inflation % of 2.1% increase seems higher than it would be under normal circumstances because there was negative to 0% inflation before. So he was saying the typical rule of thumb to increase interest rates when inflation goes over 2% may not even apply to these unusual circumstances of post pandemic economic recover.

Are you or anyone you know getting by thanks to low interest rates? Or, have you budgeted in anticipation for potential interest rate increases? It is a worry for some people I know and I wondered how many others are in the same boat?
We’re living in a tiny box so as not to take on too much debt. Terrified of interest rate increases, personally.