Most homeowners unaware of effect of interest rate increases

The newly formed Consumer Financial Education Body (CFEB) has released results of a survey showing that 74% of homeowners do not know how a 1% rise in the Bank of England base rate would affect their monthly mortgage payment.

Of even more concern, was the fact that 15% of people surveyed didn't know what type of mortgage they have; fixed or variable. Another 15% are also unaware of when their current mortgage deal ends

Just over half of those surveyed expected interest rates to rise in the next nine months, however the same amount had no plans to review their mortgage, or certainly would not do so until their current deal ends.

Chief executive of the Consumer Financial Education Body, Tony Hobman said: "Interest rates have been at record lows for some while now.

"Although there is uncertainty about when this will change, it is clear from our research that many people with mortgages haven't thought about what it would mean for their monthly payments, or where they would find the extra money in their household budget if their mortgage rate was to go up.

"Lack of time means many of us often put off reviewing our finances, but it doesn't have to be time consuming to keep on top of your money matters."

CFEB is advising people to review the Keyfacts document they received when they first took out their mortgage and has created a mortgager calculato so that people can see what impact interest rate rises would have on their monthly payments. This calculator can be found at .

If you are planning to remortgage your property and require legal advice and representation, contact Wilson Nesbitt solicitors in Belfast by emailing [email protected] .

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