PERSONNEL SUPPORT BRIEF - NFF

BRIEF 15
HELP FOR THOSE WITH MORTGAGES
Key Points:
• Three-quarters of mortgage holders don’t know how an interest rate change
of one percentage point could affect their monthly outgoings.
• The Consumer Financial Education Body (CFEB) has launched the ‘Stay on top
of your mortgage’ campaign.
• Divisional Meetings should be used to raise awareness of the free and
impartial resources available from CFEB.
• Personal guidance and advice on these issues is also available from The
White Ensign Association.
• Stay on top of your mortgage - Three-quarters of mortgage holders don’t know how an
interest rate change of one percentage point could affect their monthly outgoings - even
though over half of mortgage holders believe interest rates will change in the next nine
months. (CFEB research, 2010)
• The Consumer Financial Education Body (CFEB) launched the ‘Stay on top of your
mortgage’ this summer to provide home-owners with essential help and to prepare for
when interest rates – or personal circumstances – change. It helps people to take control
so that they don’t fall behind with their mortgage repayments later. CFEB’s ‘mortgage
toolkit’ is free to use at: www.moneymadeclear.org.uk/mortgages
• If a homeowner has a £150,000 interest-only mortgage and their lender increases the
interest rate by just one percentage point, the homeowner’s monthly payments would
go up by £125 per calendar month.
• The Moneymadeclear ‘mortgage toolkit’ includes a “cut-back calculator” to show how
cutting back on small purchases can quickly add up to substantial savings. The budget
planner helps people see where their money is going each month, making it easier
to spot where they could make changes. If a mortgage deal is coming to an end, the
impartial mortgage comparison tables will help when it is time to shop around.
• CFEB is an independent body responsible for helping consumers understand financial
matters and manage their finances better. CFEB was established by the Financial Services
Authority (FSA) and deliver impartial financial information, education and advice to
consumers through “Moneymadeclear”.
• The Moneymadeclear service is also available over the phone on 0300 500 5000 and
through a range of free, printed Moneymadeclear guides including ‘Just the facts
about mortgages’ and ‘You can afford your mortgage now, but what if?’ at www.
moneymadeclear.org.uk
• The White Ensign Association, with its panel of finance and mortgage advisors, works
closely with the CFEB and is the CFEB’s preferred provider of financial capability
presentations to naval audiences. The WEA readily endorses the guidance made available
by the CFEB.
• For more information on CFEB and their work visit www.cfebuk.org.uk
Brief prepared by Mr Joseph Walsh;
joewalsh@moneymadeclear.org.uk
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