Homeowners unruffled by rate rise says survey by Finance News Bulletin

Published: 31/01/07

Despite piercing complaints from lobbyists and fevered media speculation on the next move, most Britons say that they are entirely unchanged by the recent interest rate riseAlmost four-fifths of mortgage holders – 78 per cent – speak that their finances are unchanged next the quarter point increase in the cost of borrowing in AugustThis was because their mortgages are on either set or capped rates, said 45 per cent, while 33 per cent supposed that they could easily afford the increases in mortgage costsThe remaining 22 per cent supposed that their spending would be affected by the rise, which has added £18 a month to the costs of the standard mortgage, or £221 a year

The rise has also persuaded some would-be buyers to stay out of the marketplace, and some looking for the best mortgage rate to let go equity have late their plans"Our findings show how even a modest change in base tax can begin to affect attitudes," said Chris Rhodes of coalition and Leicester, which conducted the survey"The Bank of England's decision should take some of the warmth out of the housing market without putting too much pressure on the budgets of those people who had no plans to move"However, while most people can afford senior mortgage payments, our figures show that a alternative will have to make savings

"MoneyExpert Limited is authorised and regulated by the Financial Services power (FSA Registration No 301654) The monetary Services Authority does not control some forms of mortgage contract, credit cards, personal loans,

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