The Sterling Crisis: The high cost of a mortgage rate rise

ANY RISE in mortgage rates would further damage the housing market. John Wriglesworth, analyst at stockbrokers Phillips & Drew, said the pyschological impact would be disastrous. With repossessions at record levels, Shelter, the charity for the homeless, warned that families would lose their homes if rates rose. About 37,000 under suspended repossession orders faced eviction if they defaulted on agreed payment schedules.