Mortgage detail beyond most home owners
Three-quarters of mortgage holders don’t know how an interest rate rise of 1% would affect their monthly outgoings, according to new research from the Consumer Financial Education Body (CFEB).
The study also found that over half of home owners questioned expect rates to change in the next nine months, although one in seven had no idea whether their mortgage was on a fixed, standard variable, tracker or discounted rate.
Furthermore, 14% of respondents were bereft of ideas on how to make cut backs if their mortgage payments increased by £200 per month.
CFEB chief executive, Tony Hobman, comments: “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.”
He adds: “Our Moneymadeclear ‘mortgage toolkit’ – which can take as little as five minutes – makes it easy to see where you stand so you can plan ahead.”
The CFEB was set up recently by the Financial Services Authority to help consumers manage their finances.
The body has this week launched a “stay on top of your mortgage” campaign offering help and advice to home owners.