With plenty of talk about interest rates going up in the near future, it’s important to know what steps you can take to prevent any increases in your mortgage payments tipping your finances over the edge.
We recently covered the basics of mortgage interest rate rises, telling you how this could affect you or your debt solution and tips on preparing for the changes.
And now research from the Money Advice Service (MAS) has found that almost half of households (47%) in the UK would struggle to cover their mortgage payments if there was a rise in interest rates.
To help explain things clearly and offer ways to save money, they’ve put together a helpful graphic to explain what could happen if the rates increased.
Prepare For Interest Rate Rises – A graphic by the team at Money Advice Service
What can you do to prepare?
As you know, we’re a team dedicated to helping you save money and avoid falling into debt. Making simple changes to your budget now will help you to prepare if your mortgage payment goes up. We want it to be less of a shock.
As the graphic shows, the Money Advice Service (MAS) has also provided some of their own tips to help you cope with the extra costs, including:
- Save on your water bills by taking shorter showers and fixing leaking taps
- Switch to energy saving light bulbs and turn appliances off at the wall
- Join a car club to save up to £3,000 a year on travel costs
- Take part in the cycle to work scheme, which helps with the cost of buying a bike
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