Mortgage customers show lack of industry knowledge

The financial impact of rising interest rates on mortgage payments is miscalculated and misunderstood by almost three quarters (70%) of British mortgage holders, a new survey has revealed. The latest Personal Credit Index survey from CreditExpert.co.uk reported that when asked what effect a 0.5% interest rate rise would have on monthly payments for a Ј100,000 interest-only mortgage, seven in ten (70%) of Brits answered incorrectly.

The Index also revealed that almost eight in ten (77%) of mortgage holders do not know what annual percentage rate (APR) is, with 44% thinking it is only the interest rate of a loan and a sixth (15%) stating it is the amount of a loan paid back in a year.

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