Lack of Anticipation of Effects Can Affect the British

Photo source: Property Wire

There have been a lot of whispers about Bank of England lately and the assumed raise of interest rates.

Any type of raise would clearly influence home owners, but here’s an example of how a small increase can look like for a monthly budget: a 0.25% rise of rates would mean that a typical variable mortgage repayment could cost an extra £13 a month. However, switching to a fixed rate deal could save borrowers £119 per month.

But, as the latest research suggests, the homeowners are not prepared for a raise in this sector. 68% do not actually know how a base interest raise can affect them.

Research suggests many British home owners are not prepared for interest rate rise

Knowing the risks and the implications is vital to choosing rightfully, at least when it comes to money.