With the EU referendum just days away, new research has revealed that four out of 10 Brits believe a Brexit vote will have no impact on interest rates.
According to the survey by credit check company ClearScore, of those intending intending to vote Leave the figure is even higher, with 54% believing interest rates would be unaffected
In comparison, seven out of 10 of Remain voters think rates will go up.
The Bank of England has warned that leaving the EU could tip Britain into recession, send house prices crashing and force up interest rates.
Mark Carney, the governor of the Bank of England, said that a Brexit vote could have “material” consequences for UK growth, with interest rates being raised to bring inflation under control.
However, experts remain unconvinced. Many analysts believe that a rise in interest rates is unlikely as the Bank of England would want to shore up confidence following a Brexit vote, even if the pound plummets and inflation rises.
A 2% increase in interest rates would leave a family with a £100,000 mortgage more than £100 worse off a month.
When asked how they’d cope with this, half (50%) said they’d need to reduce monthly expenditure. Nearly a third (32%) would be forced to put off expensive purchases such as a house or car.
Over one in five (21%) would try to work longer hours and 11% would actively try to increase their credit score to get the best deals on credit.
Justin Basini, founder and CEO of ClearScore, said: “No one can predict the exact impact of Brexit itself on interest rates, but they are certain to go up at some point. That means people need to plan for rate rises, no matter what the outcome of the referendum.
“Personal debt levels are at record levels, so thinking about ways to reduce spending now, as well as making sure you’re not overpaying for credit will help reduce any financial pain when rate rises do kick in.”
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