Roseland69 Posted July 7, 2010 Share Posted July 7, 2010 http://news.bbc.co.uk/1/hi/business/10521707.stm Three-quarters of mortgage-holders do not know how an increase in interest rates of one percentage point would affect their budget, a survey says. Some do not know what type of mortgage they have or when it expires, the poll found. The survey of 2,262 people was conducted for an education group, the Consumer Financial Education Body. The Bank rate has been kept at 0.5% for 15 months in a row, with the latest decision to be announced on Thursday. Poll Key findings of the survey included: Some 51% of those asked believe interest rates will change in the next nine months One in seven (15%) do not know whether they are paying a fixed, standard variable, tracker or discounted rate Some 8.6 million people, out of 14.6 million people in the UK who have a mortgage, have a time-limited deal One in seven (15%) of these people do not know when their deal expires To assist them, the group has updated its mortgage guides on the Moneymadeclear website. Tips include checking "key facts" paperwork provided by a lender when the mortgage was taken out. This shows when the deal comes to an end. "Interest rates have been at record lows for some while now," said Tony Hobman, chief executive of the group. "Although there is uncertainty about when this will change, it is clear from our research that many people with mortgages have not thought about what it would mean for their monthly payments, or where they would find the extra money in their household budget if their mortgage rate was to go up. "Lack of time means many of us often put off reviewing our finances." Quote Link to comment Share on other sites More sharing options...
Oliver Sutton Posted July 7, 2010 Share Posted July 7, 2010 http://news.bbc.co.uk/1/hi/business/10521707.stm Three-quarters of mortgage-holders do not know how an increase in interest rates of one percentage point would affect their budget, a survey says. Some do not know what type of mortgage they have or when it expires, the poll found. The survey of 2,262 people was conducted for an education group, the Consumer Financial Education Body. The Bank rate has been kept at 0.5% for 15 months in a row, with the latest decision to be announced on Thursday. Poll Key findings of the survey included: Some 51% of those asked believe interest rates will change in the next nine months One in seven (15%) do not know whether they are paying a fixed, standard variable, tracker or discounted rate Some 8.6 million people, out of 14.6 million people in the UK who have a mortgage, have a time-limited deal One in seven (15%) of these people do not know when their deal expires To assist them, the group has updated its mortgage guides on the Moneymadeclear website. Tips include checking "key facts" paperwork provided by a lender when the mortgage was taken out. This shows when the deal comes to an end. "Interest rates have been at record lows for some while now," said Tony Hobman, chief executive of the group. "Although there is uncertainty about when this will change, it is clear from our research that many people with mortgages have not thought about what it would mean for their monthly payments, or where they would find the extra money in their household budget if their mortgage rate was to go up. "Lack of time means many of us often put off reviewing our finances." Sorry to appear cynical but sounds like some quango just commisioned a survey to justify it's own existence. Quote Link to comment Share on other sites More sharing options...
Redcellar Posted July 7, 2010 Share Posted July 7, 2010 http://news.bbc.co.uk/1/hi/business/10521707.stm Three-quarters of mortgage-holders do not know how an increase in interest rates of one percentage point would affect their budget, a survey says. Some do not know what type of mortgage they have or when it expires, the poll found. The survey of 2,262 people was conducted for an education group, the Consumer Financial Education Body. The Bank rate has been kept at 0.5% for 15 months in a row, with the latest decision to be announced on Thursday. Poll Key findings of the survey included: Some 51% of those asked believe interest rates will change in the next nine months One in seven (15%) do not know whether they are paying a fixed, standard variable, tracker or discounted rate Some 8.6 million people, out of 14.6 million people in the UK who have a mortgage, have a time-limited deal One in seven (15%) of these people do not know when their deal expires To assist them, the group has updated its mortgage guides on the Moneymadeclear website. Tips include checking "key facts" paperwork provided by a lender when the mortgage was taken out. This shows when the deal comes to an end. "Interest rates have been at record lows for some while now," said Tony Hobman, chief executive of the group. "Although there is uncertainty about when this will change, it is clear from our research that many people with mortgages have not thought about what it would mean for their monthly payments, or where they would find the extra money in their household budget if their mortgage rate was to go up. "Lack of time means many of us often put off reviewing our finances." I can fully understand. If I had a £200K + mortgage I think I too would suffer and not find the time to know what it is or if there is a better alternative. I have too much on to spend an hour looking into it. There's BBC HD football for example. That eats all my time, and when that is over I have the Tour de France and then maybe some rhythmic gymnastics. I really can't be bothered to make time to save thousands of pounds. On another topic I am finding the economy beans a great way to save 5 pence. Anyone else got any good tips? Quote Link to comment Share on other sites More sharing options...
Pent Up Posted July 7, 2010 Share Posted July 7, 2010 I can fully understand. If I had a £200K + mortgage I think I too would suffer and not find the time to know what it is or if there is a better alternative. I have too much on to spend an hour looking into it. There's BBC HD football for example. That eats all my time, and when that is over I have the Tour de France and then maybe some rhythmic gymnastics. I really can't be bothered to make time to save thousands of pounds. On another topic I am finding the economy beans a great way to save 5 pence. Anyone else got any good tips? What you don't know can't hurt you, right? Quote Link to comment Share on other sites More sharing options...
Redcellar Posted July 7, 2010 Share Posted July 7, 2010 What you don't know can't hurt you, right? Absolutely. My other home is in Dubai. I stuck my head in the sand. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted July 7, 2010 Share Posted July 7, 2010 Absolutely. My other home is in Dubai. I stuck my head in the sand. Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted July 7, 2010 Share Posted July 7, 2010 What you don't know can't hurt you, right? If it never happens, yes. The expression "ignorance is bliss" is often not that far from the truth. The philosophical, cautious types who plan for - and by extension expect - the worst, are always less happy than those who waft through life with their eyes half closed. Who are the real fools? Quote Link to comment Share on other sites More sharing options...
Pent Up Posted July 7, 2010 Share Posted July 7, 2010 If it never happens, yes. The expression "ignorance is bliss" is often not that far from the truth. The philosophical, cautious types who plan for - and by extension expect - the worst, are always less happy than those who waft through life with their eyes half closed. Who are the real fools? But what's better, a few years of bliss and a lifetime of hell or a lifetime of sensible prudence. Quote Link to comment Share on other sites More sharing options...
Redcellar Posted July 7, 2010 Share Posted July 7, 2010 But what's better, a few years of bliss and a lifetime of hell or a lifetime of sensible prudence. How good is the bliss? I'm considering it. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted July 7, 2010 Share Posted July 7, 2010 How good is the bliss? I'm considering it. Oh it's good, no more worries about mortgages, jobs, house prices, savings. Inflation, deflation, interest rates, it's easy too, I've got a friend who does it whenever someone tries to talk to you about any of the above just sing a song in your head, stare blankly and then say "nah never happen" For example "'so your paying £900 a month on a base rate +4% tracker?, what are you going to do when interest rates hit 3 or 4% or get back up to around 6%?" "nah, it'll never happen... Did you watch da football innit?" Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted July 7, 2010 Share Posted July 7, 2010 But what's better, a few years of bliss and a lifetime of hell or a lifetime of sensible prudence. You're assuming the bliss is short lived and the hell not so. I think in reality it's the other way 'round. Personally i'm the dreary prudent type, but i'm having doubts Quote Link to comment Share on other sites More sharing options...
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