According to a recent report, around 75% of mortgage holders are unaware of by how an increase in interest rate of 1 percent would affect them.
The survey also found that worryingly, some people don’t know what mortgage deal they are on or when it will end.
The poll was conducted on behalf of education group the Consumer Financial Education Body and surveyed 2,262 people.
Today the Bank of England’s Monetary Policy Committee (MPC) will decide upon the base interest rate. Currently at 0.5%, this is the same rate it has been held at for the past 15 months.
A summary of the poll results, according to the BBC, include:
• 51% of those surveyed believe interest rates will be altered over the forthcoming 9 months
• 15% don’t know if they are on a standard variable, discounted, tracker or fixed interest rate
• Of 14.6 million homeowners in the UK with a mortgage, 8.6 million have a time-limited mortgage deal yet 15% of these are unaware of when theirs will finish
To help people increase their own mortgage awareness, the Consumer Financial Education Body has updated its mortgage information and guides on its website – Moneymadeclear.
Top tips include to check the Key Facts Illustration provided by their mortgage advisor when a mortgage is issued – this will show when your mortgage deal will finish.
The Group’s Chief Executive, Tony Hobman, commented:
“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 have not 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.”