33% of UK homeowners would struggle to pay mortgage if interest rates increased

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A recent study conducted by ICM Research has suggested that over 30% of British people could find it a struggle to struggle to make their monthly mortgages if interest rates are hiked to 2%.

Homeowners in the South East fear rising rates

ICM Research interviewed an online sample of 2,050 respondents aged 18+ on 5-6 November 2014. Of over 2,000 adult UK residents questioned on 5th-6th November 2014, those living in South East England reported the highest level of concern, with just under 40% of respondents in this region stating that they anticipated severely struggle to pay their mortgage each month if interest rates were to increase by 2%.

When will rates increase?

The Bank of England has kept UK interest rates at a record low of 0.5% since 2009, nut this may not last, as Mark Carney, the Governor of the Bank of England, has indicated that the Bank of England Base Rate will rise gradually from its current 0.5% low, maintained since 2009, to around 3%. However, BoE officials have said that any interest rate hikes will be gradual, indicating that it will only rise by 0.25% with each increment. Even so, the research suggests that the British home-owning public are nervous of any increase in rates, however small.

Consider a remortgage for the best deal

To make sure you are getting the best mortgage rates available, you may want to consider a remortgage deal.

To compare the best remortgage deals available and find remortgage options that could help you save money, click on the links above.