Latest Legal & General Mortgages MortgageMoodsurvey reveals that 34% of UK homeowners are willing to pay more per month to protect against future rate rises.
06 March 2012
Legal & General Mortgages today reveals that 34% of UK mortgage holders would be willing to pay a higher monthly amount to fix mortgage rates and protect against any future rate increases. The findings come as part of Legal & General Mortgage's quarterly MortgageMood study into the attitude of British homeowers and first-time buyers on a range of mortgage related issues. The omnibus survey revealed that 34% of mortgage holders in the UK would be willing to pay a higher monthly amount to fix despite the UK experiencing historically low interest rates. A further 11% were unsure and 55% were happy to continue paying the current monthly amount for their mortgage and risk rate hikes further along the line.
The study also showed that of those willing to pay more,30% were willing to pay an extra £26-50, 24% an extra £1- £25, 18% an extra £100 and above, 13% between £51-£75 and 6% £70-£99 per month. The North-East (48%) Yorkshire and Humber (43%) and the South-East (38%) were the regions most happy to to pay more while the South West (23%), London (25%) and the North-West (25%) were the least willing.
Ben Thompson, Managing Director of Legal & General Mortgages Club says:
"It is surprising that such a high percentage are willing to pay more per month to fix when you consider we are experiencing an environment of benign low interest rates. Whilst the majority of homeowners are still happy to wait and take advantage of this,it is clear there is still a feeling of nervousness across much of the UK when it comes to mortgage repayments and this feeling of unease is increasing. The announcement from Halifax this week that it intends to increase its SVR to 3.99% and the economic pressures being felt across virtually all households in the UK means that people are now starting to think very carefully about the best options for their mortgages. It seems many squeezed household budgets would be unable to withstand any potential 'mortgage shock' that a sudden base rate hike or increase in pressure from unplanned expenditure may bring."
"However, the fact remains that base rate is likely to remain stable for a long while to come. Its natural that some may seek the stability that a fix can bring and are willing to pay a premium for that peace of mind as some mortgage deals start to come to an end and people look towards what is an uncertain future. It is worth periodically checking in with an intermediary to see if a current deal can be bettered as low rates will not last forever and it is important to be as prepared as possible for every eventuality."
Notes to editors
Legal & General Mortgage Club
Established in 1995, the Legal & General Mortgage Club is the original and longest running club in the UK. As you'd expect from a leading mortgage club, the variety of exclusive deals and competitive procuration fees offer one of the best routes to mortgages in the market. The Mortgage Club isn't just about mortgages. We also provide a wide range of other products and services including personal finance solutions, such as overseas mortgages and bridging loans, a variety of services through our third party suppliers, such as will writing and lead generation and award winning savings, protection and general insurance products.
For more information visit: www.legalandgeneral.com/mortgageclub
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 30 June 2011, we were responsible for investing £370 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
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