Rising interest rates could lead to a surge of repossessions, with many people simply walking away from their homes rather than pay mortgages, Peter Hargreaves has claimed.
The outgoing chief executive and co-founder of Hargreaves Lansdown, who steps down today, told the Daily Telegraph that increasing interest rates would be “disastrous” for the economy and many people would “throw away the keys” to their houses.
Hargreaves said: “There are an awful lot of people just about financing mortgages on homes in negative equity because of low interest rates.
“However, if mortgage payments were to rise above rental costs, repossessions could become a big problem.”
