You are here: Home - Mortgages - Buy To Let - News -

Southern mortgage borrowers fear interest rate rise the most

0
Written by:
20/08/2014
Southern homeowners are more worried about an incoming rate rise and its effect on mortgage payments than borrowers in the North East, Wales or Scotland, said a survey.

Over half of homeowners in the South East are concerned, followed by the South West at 49 per cent, according to a Halifax survey.

Across the country, one in ten mortgage holders (13 per cent) said they would find it difficult to afford their monthly mortgage repayments if it rose £50. A third would find it hard to stretch to an extra £100.

Rate rises are more likely to worry women, those in the 35-44 age bracket and families with children. Respondents with variable rate mortgages at 57 per cent, were far more worried than those on a fixed rate.

To find the extra cash for a £100 rise in mortgage payments, a third of mortgage borrowers said they would have to cut spending on essentials such as food, energy, clothing and insurance.

This rises to 39 per cent for Londoners and those living in Wales.

Craig McKinlay, mortgages director at Halifax, said: “Speculation of a potential rate rise has been high up on the news agenda for some time now so it is perhaps surprising that the majority of homeowners are not concerned about this.

He continued: “While responsible mortgage lenders take into account potential rate increases as part of the affordability checks in the mortgage application process, the way in which people manage their remaining disposable income will be a key factor in how well they can adjust to any changes in rates.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week