Concerns have been expressed in recent report over what might happen to the UK’s economy in the event of a hung parliament in the up and coming general election. Many are concerned that this could rock the nation’s already fragile economy and could lead to soaring mortgage costs, higher interest rates, and a far weaker pound.

The possibility of a hung parliament is very real at the moment, with the usual two horse race between the Labour and Conservative parties having now turned into a genuine three way competition with no clear winner evident as yet. Whilst some, including the leader of the Liberal Democrats, Nick Clegg, are not overly concerned about a hung parliament others think that this could spell disaster.

According to reports a hung parliament could see interest rates soaring from the all time low of just 0.5 percent to 3.5 percent or more. Homeowners that are still paying off mortgages could see their mortgage repayments increase by hundreds of pounds a month, and the British economy could be severely affected and could struggle for many months to come.

There are also concerns that the British pound would take a nosedive as a result of a hung parliament which would be bad for the economy as well as for travellers. The weak pound would also mean that consumers would be paying more for things such as petrol, the price of which is already causing severe financial problems for many drivers.

The CEBR said: “Of course we just don’t know what will happen. We are in unchartered territory. It could be OK. Or it could be absolutely awful. But most people don’t seem to realise how fragile the economy is. And now is not the time to sort out the deficit by taking a stab in the dark with a hung parliament.”