Mark founded MoneyMaxim in 2008, with the aim of delivering an impartial and independent service. Mark is a regular money saving expert in the press and writes regular news and articles for the MoneyMaxim news pages sharing his views on banking, personal insurance and the utilities (gas, electricity, mobile and home phones, broadband and pay TV) market with customers.
**One in five homeowners are unaware of what would happen to their mortgage repayments if the base rate was to rise. **
The Bank of England base rate is currently at 0.5 per cent, remaining the same since January, however speculation has risen over when it will increase. New research from professional advice website unbiased, found that 22 per cent of people are unaware of what will happen to their personal monthly mortgage payments if the base rate increases.
"Predictions of when the base rate will increase are drawing ever closer, but when it happens it will still come as a surprise to many homeowners. The base rate increase is inevitable and so when this happens homeowners need to ensure they are prepared for what this increase will mean for their personal finances”, said Karen Barrett, Chief Executive of Unbiased.
3.5 million homeowners across the nation are left in the dark as to what effect an increase could have on their finances. The research found that 16 per cent of homeowners on their lenders SVR mortgage have no idea what effect an increased base rate could have on their finances. 16 per cent think payments would increase but not by as much as the base rate.
Homeowners on fixed rate mortgages are unsure of the outcome of an increased base rate. According to Unbiased, almost a third of people on fixed rate mortgages believe their personal monthly payments will increase at some point if the base rate rises. One in twenty wrongly think that they will experience an automatic payment increase should the base rate rise.
**Review Mortgage **
"It's vital for homeowners to regularly review their mortgage arrangements to ensure that they are on the best deal for them. Homeowners should seek whole of market mortgage advice to understand what deal they are currently on and when it's the best time for them to move onto a new deal.” Commented Barrett.
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