A leading housing charity has warned that a rise in interest rates could come as an unwelcome surprise for many homeowners.
Shelter is highlighting research carried out last year by the Council of Mortgage Lenders which showed that one in four mortgage borrowers did not appreciate that rates are at an historic low. According to the research, many of those borrowers believed that current rates were in fact significantly higher than they had been previously.
The conclusion being drawn by Shelter is that as many as 2.8 million homeowners may be unprepared for a rate increase. Describing the apparent lack of awareness as “frightening”, Shelter’s chief executive Campbell Robb urged homeowners to check how any rise in rates would affect them and put plans in place.
Meanwhile, the debate about the future path of interest rates is once again hotting up. The news that factory gate prices (at which goods are sold by manufacturers) are climbing at an annual rate of 5.3%, has added to fears about inflation. Many analysts are now predicting an interest-rate rise as early as next month or in May to hold back prices. At the same time, others are warning of the damage a rise in rates could do to growth and employment – apart from its impact on borrowers.
Even for the majority of us who do try to keep tabs on interest rates and mortgage payments, it can be worth checking to make sure that our mortgage arrangements fit in with our financial priorities – and that payments are no higher than they need be. With a variety of remortgage options available, an experienced broker such as Go Remortgage can help you review your current deal.
Tags: Business, Economy, Markets, Mortgage Rates
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