1 in 5 `don`t know how rate rise would affect mortgage payments`

More than one in five homeowners (22%) don`t know how their mortgage payments would be affected when the base rate increases, according to financial advice website unbiased.co.uk.

With many economists expecting a base rate rise in the coming months, many homeowners on tracker and variable-rate mortgages will be worried about whether they will be able to afford a subsequent increase in their monthly payments.

But unbiased.co.uk`s research suggests that many have not even considered how their outgoings could change - meaning they may be left unprepared when mortgage rates do go up.

An expert at debt management company Gregory Pennington said: "Homeowners simply don`t know how much their mortgage payments will increase, because we don`t know when - or how quickly - the base rate will rise, but nonetheless it pays to be prepared.

"Homeowners could still ask their mortgage lender how much their payments are likely to change when the base rate rises, as this should give them a reasonable idea of whether they have room in their budget. If you think you`re likely to struggle, get advice from an expert."



Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.