Property Owners Unsure About Mortgage Rates

Property owners are not aware of the effect a change in the interest rate would have on mortgage repayments.

A survey by Consumer Financial Education Body (CFEB) found that 75% of property owners are unsure how just a 1% interest rate rise would change the mortgage repayment.

The survey also showed how people would handle this change.

More than 50% of property owners expect interest rates to change in the next 9 months:

• 54% had no plans to take a look at their current mortgage
• Over 2 million people would not be able to find the cash to for a £200 increase in their monthly mortgage repayment.
• 1 in 7 didn’t know their type of mortgage (fixed, standard variable, tracker, etc)
• 15% didn’t know when their mortgage deal expired

There is no clear sign of when interest rates will rise again, but this research shows that property owners need to pay closer attention to their mortgage and their property investments if they are to protect their homes…

Interest rates may historically be at an all time low, but this won’t last forever.