Over half of mortgage-holders may struggle when rates rise.
Mortgage-holders have had access to record low rates for so long, that more than 1.85 million UK home-owners have never experienced a rate rise.
Many simply do not understand the true implication of an interest rate hike and the impact it will have on house-hold finances.
According to a survey by the Building Societies Association, 52% of borrowers question advised they would struggle to keep up with their repayments if rates were to rise.
Many said they would experience real financial problems and would have to cut back on essentials such as food to make their repayments.
With concern growing amongst mortgage-holders that if rates rise they will struggle to cope, the advice is to lock into a competitive deal while rates are still low.
If you want an increased level of security a 5 year fix could be the way to go, a shorter term fix will come with a lower rate but it offers less security.
If you would like advice on how to get the cheapest deal and which mortgage term would suit your needs best, call an adviser at independent and 'whole of market' broker Deal Direct.
We are here to find you the very best mortgage tailor-made to match your individual needs.
For free impartial advice and a low rate quote call us on 0800 048 8828.
