Homeowners Clueless About Their Mortgage
A disconcerting amount of homeowners are completely unaware of the impact an interest rate increase would have on the cost of their mortgage…
During a recent study performed by Consumer Financial Education Body (CFEB), they found that more than three-quarters of property owners had got no idea how much a 1% interest rate increase would affect their mortgage and ultimately their repayments.
Yet more worrying was how they planned to deal with such an increase…
Whilst more than half of those surveyed expected interest rates to rise in the next year:
- 54% had no intention of reviewing their mortgage
- 2 million property owners had no idea where they would get the money from to cover a £200 increase per month
- 1 in 7 didn’t know whether they had a fixed, standard variable, tracker or discounted rate mortgage
- 15% weren’t sure when their existing mortgage deal was set to end
Luckily no date has been set as of yet to increase interest rates. However, after reviewing these statistics it is evident that property owners need to quickly get a handle on how their mortgage works, in order to protect their property investments in the future…
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