Thursday 25th October, 2007 

Britons do not understand the financial impact an interest rate rise will have on their mortgage repayments.

A survey conducted by credit reporting service CreditExpert has revealed that 70% of the UK's mortgage holders could not accurately calculate the effect a half percent interest rate rise would have on a £100k interest only mortgage.

The survey revealed that 19% stated that their mortgage would increase by £80, whereas 17% thought that their payments would increase by no more than £10. The actual amount which an interest only mortgage would increase by as a result of 0.5% rise in interest rates was £40.

Debtwatchdog is concerned about the lack of understanding of the impact an interest rate rise will have on mortgage repayments. This basic lack of understanding may be symptomatic of a deeper lack of understanding about household finances. It is no wonder that the national debt level is at an all time high if people are basing financial decisions on inaccurate information.

It is Debtwatchdog's mission to empower those who are struggling with their debt with the knowledge required to help dig them out of their debt hole.

If you need help with your debt problem or just need someone to cast an eye over your financial situation then complete our Statement of Affairs (SOA) and submit it to our debt forum members to review.