UK homeowners expect interest rate increase
More than half of UK homeowners expect interest rates to go up when the Bank of England’s Monetary Policy Committee meets on Thursday, according to research published today.
If rates do increase, one in three would be worried about meeting their mortgage payments, according to research from Direct Line.
The company’s Base Rate index showed while 53% are expecting an increase, less than half (49%) say they would even consider doing something about it, such as moving their mortgage.
Just one in five (20%) would consider moving their mortgage to a fixed rate and one in three said they would do nothing.
Almost a fifth (18%) think that rates will go up by as much as 0.50% or more this month, while 28% think the increase will be 0.25%.
Nearly a third of homeowners (29%) would be worried if their mortgage increased by up to £50 a month.
Paul Hemingway, Mortgage Manager at Direct Line, said: “We have experienced a steadily surging interest rate environment all year, so you can understand the concern.”
