Was Fitch Ratings warning about the likely possible impact of interest rates nonsense?

Fitch Ratings warned last weekn about possible future pain for current homebuyers tempted into a mortgage by record low interest rates. It suggested mortgage repayments could rise 40% if rates were to return to their 2008 highs.

Property Observer published the warning which wasn't taken well by Andrew Wilson from Australian Property Monitors who questioned its credibility.

It was interesting to see the same warning came through in the UK over the weekend with experts there urging caution as signs point to higher interest rates.

"The inevitable rise of interest rates is a real problem waiting to happen. A lot of people are on the cusp of being unable to afford their mortgage repayments and it won't take much to push them over the edge," financial planner at Evolve Financial Planners, Jason Witcombe,  told The Telegraph.

The Halifax Affordability Review found mortgage payments in the UK accounted for 27% of new borrower’s disposable income between April and June this year, down from a peak of 48% in the third quarter of 2007.

{module Do you think the Fitch Ratings warning about the possible impact of interest rates is nonsense?}