Interest rates rises 'will shock many homeowners'

Posted: 10 Mar 2011 13:09:15 GMT

Many homeowners will be shocked should interest rates go up, it has been claimed.

Any rises in interest rates are likely to shock many homeowners, it has been suggested.

Research carried out by the Council of Mortgage Lenders and highlighted by the housing and homelessness charity Shelter has revealed 25 per cent of 1,500 surveyed UK householders believe current rates are either higher or the same than they have been in previous years - or admitted they did not know.

Despite interest rates being at a record low, nine per cent of mortgage holders in this 25 per cent said they thought the rates were slightly higher than they have been in the past.

Campbell Robb, chief executive of Shelter, said it is frightening that so many people are unaware of the current state of interest rates.

He added: "This research makes us extremely concerned that millions will be financially unprepared when interest rates go up and won't have plans in place to manage increased costs."

The latest RICS Housing Market Survey revealed the number of people looking to buy homes in Scotland increased in February.
 

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