Nationwide Building Society Highlights Lack Of Mortgage Rate Understanding

A recent study by the Nationwide Building Society has brought to light the fact that around seventy-five percent of people do not know how a one percent change in mortgage rates will affect them financially.

Only a quarter of respondents to the Nationwide Building Society survey correctly identified that a 1 percent change in interest rate on a GBP 120,000 mortgage with a fixed rate for five years would make a difference of GBP 4,000.

Around twenty-eight percent thought the difference would be somewhere between GBP 500 and GBP 2,000 whilst a further twenty-three percent held their hand sup and admitted they had no idea at all.

So the advice from the Nationwide Building Society is pretty clear. Take a little time to work out the real financial differences in mortgage rates as it could save, or cost, a lot of money.