Londoners and residents in the South are worried about an interest rate hike
Following today’s Bank of England (BoE) interest rate decision Equifax, the consumer credit information provider, has released research conducted on 16th-17th October that reveals 43% of those living in London and the South are worried about an interest rate rise. After a decade of low mortgage rates, 44% of residents in the Midlands are most concerned about the prospect of an increase, with 48% admitting to being worried about having to make higher mortgage repayments when their fixed rate ends.
The YouGov research, commissioned by Equifax, found that those living in London and the South were the next most worried, with 43% in these regions saying they are concerned about an interest rate rise. Residents in Scotland and the East of England appear to be the least concerned, at 38%.
While across the nation 42% are worried about an interest rate rise, at the time the survey was conducted (16th-17th October) only 5% said they expected it to happen in the next month.
Over half (53%) of Northerners on a fixed rate mortgage are worried about higher repayments when their current rate ends. In London and the South, 52% on a fixed rate mortgage said the same. In the Midlands 48% of homeowners on a fixed rate mortgage were the least concerned.
More than 1 in 10 British adults with a variable rate or tracker mortgage (11%) said they couldn’t afford any increase on their most recent monthly repayment, with only 34% able to afford an increase of less than 5%.
Lisa Hardstaff, consumer credit information expert at Equifax said: "This research suggests that the rate rise could be quite a shock for a number of homeowners. The longstanding low rate environment has meant that people haven’t necessarily thought about higher interest rates when planning their finances. But we could be entering a new era where low rates can’t be relied upon indefinitely. It’s essential, therefore, that consumers don’t borrow beyond their means and understand the financial risks on any loan they take on."
Notes to editors:
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,136 adults. Fieldwork was undertaken between 16th-17th October 2017. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
Equifax Inc. (Equifax) is a global information solutions company that uses trusted unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions. The company organizes, assimilates and analyzes data on more than 820 million consumers and more than 91 million businesses worldwide, and its database includes employee data contributed from more than 7,100 employers
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