Direct Line finds homeowners worried but apathetic about interest rate rises

06 December 2004
While the majority of homeowners are worried about mortgage repayments in the event of interest rates rising on Thursday, most will not do anything about it, Direct Line has found.

58 per cent of mortgage holders said that they would be worried if interest rates rise, even if their repayments go up by less than £100 a month.

Moreover, 44 per cent of people believe that interest rates will rise this month, despite most financial experts thinking interest rates will stay on hold.

However, only two per cent of those surveyed for the Direct Line mortgage index said they would actively look for a better mortgage deal if rates do rise.

Around 17 per cent of UK homeowners currently have a fixed or capped rate mortgage, Direct Line adds.

Paul Hemingway, mortgage manager at Direct Line, commented: "Give yourself an early Christmas present with the security of a fixed rate mortgage. You will know exactly how much you have to budget for, so even if you get carried away with your Christmas spending, your mortgage is under control."

To read more about fixed rate mortgages, click here.
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