BRC - Tracker mortgage customers are going to be horrified

Homeowners and landlords with tracker mortgage deals are going to be in for a shock when the Bank of England (BoE) increases the rate of interest.

This is the view of Stephen Robertson, director general at the British Retail Consortium (BRC), who said the low rate paid by some customers could rocket when their initial two to five-year tracker rate comes to an end.

The comment follows the BoE's decision to maintain the base rate of interest at 0.5 per cent for the eleventh consecutive month.

However, many believe that the rate will start to increase in the second half of 2010.

Mr Robertson said that consumer confidence is likely to remain at current levels until the situation becomes clearer after this year's general election.

Speaking at the Totally DIY show at the Birmingham NEC, Mr Robertson said that mortgage customers are going to be "horrified" to discover that interest rates could be as high as seven per cent when they come back into the mortgage market.

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