Three quarters of UK homeowners don’t know what difference a 1% rise in interest rates would make to their monthly mortgage repayments, according to the Consumer Financial Education Body (CFEB).
The news comes despite that fact that half of those (51%) with existing mortgage deals believe interest rates are going to change in the next 9 months.
Every 7th mortgage holder (15%) has no idea which of the various mortgage deals they have – whether their monthly mortgage repayments are on fixed, standard variable, tracker or discounted rates.
Another 7th (15%) – or possibly the same 7th – have no clue as to when their mortgage deals will expire, and when they must reassess their mortgage deal, or risk slipping by default on to their lender’s standard variable rate.
The fact is that if a homeowner has a £150,000 interest-only mortgage deal, an increase of 1 percentage point would add £125 to their monthly mortgage repayments.
For the same mortgage deal, an increase of 1.6% would add £200 to the monthly mortgages repayments.
Unbiased mortgage advice is crucial when arranging a mortgage deal, or reviewing your monthly mortgage repayments, and to keep informed about the possible future effects of interest rate shifts on your mortgage interest repayments.
Taking mortgage advice from Principle First will keep you on track with your mortgage interest repayments and all aspects of your financial plan. Independent mortgage advice will save you on average £962 per year on your monthly mortgage repayments *.
Contact us online with a mortgage enquiry or ring freephone 0800 678 5929 now.
*Source: Association of Mortgage Intermediaries AMI
