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

The creation of the Consumer Financial Education Body (CFEB) was announced in the Financial Services Bill now before parliament and will be staffed by 160 staff drawn mainly from the Financial Capability Division of the Financial Services Authority (FSA).

Although the FSA will have “certain oversight responsibilities” for the new body, the CFEB will be independent, with its own CEO, chairman and board.

The operations of the CFEB are likely to include a national telephone adviceline, a website and face-to-face financial guidance.

According to the information provided on the brief of the new body, the CFEB  will aim “to make a tangible difference to quality of life for millions in the UK, by helping them to manage their finances effectively and avoid getting into unmanageable debt.”

The Treasury has estimated the cost of the new service in the long-term at up to £2.7bn.