Mortgage borrowers in the South East and South West most concerned about future base rate rise

20th August 2014

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Around half (51%) of UK homeowners are unconcerned about a rate rise and the impact that it could have on their monthly mortgage repayments over the next 12 months.

However a survey by Halifax found that two in five are concerned with  homeowners in the South East (53%) are the most concerned, followed by the South West (49%) respectively.

Other groups who are more likely than others to say they are concerned about interest rate rises impacting their mortgage payments are women (45%), those aged 35-44 (50%), families with children (48%), and those with variable rate mortgages (57%, compared to 43% of those with a fixed rate mortgage).

Nationally, one in ten mortgage holders (13%) say they are concerned that they would find it difficult to afford their monthly mortgage repayments if the amount was up to £50 higher. A third (33%) say they would struggle if the amount was up to £100 higher, and this figure rises to 42% for those on variable rate mortgages.

Regionally in the North West, a third of mortgage holders (30%) say that they would find it difficult to afford monthly repayments if the amount increased by up to £50.

In Scotland and North England, one in five (20% and 21%) respectively would find it difficult to afford payments if they increased by up to £50.

In the West Midlands, 45% of homeowners would find it difficult to afford repayments if they increased by up to £100 while 60% would find it difficult to afford payments if they increased by up to £150.

In the South West, 46% say they would struggle if their monthly mortgage payment was £100 higher

Craig McKinlay, mortgages director at Halifax says: “With the base rate remaining at 0.5% for over five years, a significant number of homeowners have not yet experienced the effects of a rate rise. While responsible mortgage lenders take in 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.”

IMethodology: Ipsos MORI interviewed 1090 mortgage holders between 04 and 21 July 2014. Data have been weighted to the known profile of mortgage holders.

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