According to Nationwide research, around 75 percent of homeowners with a mortgage have no plans at all to consider how they will cope when the interest base rate rises, as it inevitably will.
As any mortgage advisor will tell a customer looking to apply for a mortgage, it is important that if they ever find themselves struggling to maintain their household expenses or other bills it is important that the mortgage payment remains a priority in order to avoid the risk of losing the property.
Over the last couple of years, whilst the interest base rate has remained at its record low of just 0.5 percent, many people have become somewhat complacent. Indeed, the research from Nationwide appears to back up the thought that some will find it a huge shock when the interest rates start to increase once more.
A mortgage specialist from Nationwide, Martyn Dyson, stated:
“We have done some research recently and that shows that customers have got a different attitude to their mortgage than other things. They seem to spend a lot of time planning for big-ticket items – such as buying a TV, a car or a holiday – but when it comes down to mortgages, it doesn’t seem to be the same.
“It is a good time now for people to take stock of their position, speak to their lender and find out what their options are.
“There is a real opportunity for people to start planning their mortgage now and maybe even save some money which would put them in a better position for when the base rate does start to increase.”
Mr Dyson went on to add that, although perhaps not quite as exciting as other purchases such as purchasing a new car, the mortgage payment is a big commitment and ‘fundamental’.
CeMAP training is required to become a fully qualified mortgage advisor in the UK. Mortgage advisors are available to help choose the right mortgage for your circumstances and would always advise that a mortgage payment remains a top priority, followed closely by loans secured on the property, hire purchase agreements and other such bills.
