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A third of Brits could not cope with base rate rise


A new survey from has shown that a third of Britons don’t think their finances could cope with a rise in the mortgage base rate. conducted a study by asking 2,000 people how an increase would impact on their monthly budget. 21% of people said a rise would affect their disposable income quite a lot, and 7% said it would have a significant impact. 22% of people believed a 0.5% rise or more would not affect their monthly budget at all, whilst 40% said it would only impact it a little. 10% said they did not know.

The survey also asked people to predict how much the rate rise will increase by. 65% of people expect the base rate to rise by at least 0.25% in the next 12 months, in line with economist’s expectations.

A fifth (20%) expected a rise of 0.25% while 45% thought it would jump by 0.5% or more. A further 20% of respondents admitted to having no idea.
Paul McGerrigan, chief executive of, said:

“The Bank of England has told us that when rates eventually do rise, they will do so gradually, which is encouraging.

“If we do see the first rate rise in the next 12 months in line with economic forecasts, it won’t be large and borrowing rates, whether it be for a mortgage or a secured loan, will remain low.

“The results of the survey show that households recognise that although the base rate can’t stay at 0.5% forever, it appears it won’t rise sharply as in the past.

“This, combined with an increase in disposable income as a result of falling oil prices and the knock on reduction of shop prices, means consumer confidence appears to be higher than it has been for several years.”

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