Almost 40% of British homeowners are unaware of what a 0.5% increase in interest rate rises could mean for their monthly mortgage payments, it has been revealed.

UK homeowners have enjoyed extremely low interest rates this year, and the Bank of England claim that they will “stay lower for longer,” meaning homeowners can continue to take advantage of cheap mortgage rates.

However, it has been reported that in 2016, interest rates could rise by up to 0.5%, and a study by online estate agent eMoov has revealed that 40% of homeowners asked were unaware of how much their monthly mortgage payments would increase by if interest rates went up by the proposed 0.5%.

Although 0.5% is only a small amount, it could prove detrimental to many. After the interest rates have risen, a London homeowner would have to fork out on average an extra £1,000 a year; a concern for those struggling to make ends meet.

Founder and CEO of eMoov.co.uk, Russell Quirk, commented: “A jump of £50 to £100 per a month might seem insignificant to most, but for those really borrowed up to the hilt in order to get a foot on the ladder, it could be potentially catastrophic. Despite the comfortable economic climate at present, many UK homeowners are counting every penny in order to get by. So an increase of more than a £1,000 a year could soon snowball into a more substantial debt.”