Most homeowners misunderstand interest rates

The Personal Credit Index survey, conducted by CreditExpert.co.uk, also reveals consumer credit confidence is increasing, despite turbulence in global debt markets and recent interest rate rises. CreditExpert.co.uk asked homeowners what effect a 0.5% increase in interest rates would have on monthly payments for a £100,000 interest only mortgage. Seven out of ten answered incorrectly, with 17% saying payments would rise by £10 and 19% estimating an increase of £80. The correct answer was £40. The research also found almost eight in ten respondents did not know the meaning of annual perce...