25% of UK homeowners surveyed by Shelter believe current interest rates are either higher or the same than they have been in the past or simply don’t know.

This is despite the fact that interest rates are at a historic low.

Within the 25% who are unaware, 9% of mortgage holders believe interest rates are slightly higher than they have been in the past, whilst 4% believe they are much higher than they have been previously.

The housing and homelessness charity is highlighting the research, conducted by the Council of Mortgage Lenders (CML) last year, on the day that the Monetary Policy Committee (MPC) meets to decide whether record low interest rates should go up. Shelter is warning the equivalent of 2.8 million homeowners may be completely unprepared for the costs of rising interest rates based on their lack of awareness about where they are currently.

Recent research by Shelter showed the number of homeowners struggling to pay their mortgage has risen by 78% in a year while the number of people using credit cards to help pay their rent or mortgage has increased by 50%.

Campbell Robb, chief executive of Shelter said: “It is frightening to think so many homeowners are completely unaware that interest rates are at a record low. This research makes us extremely concerned that millions will be financially unprepared when interest rates go up and won’t have plans in place to manage increased costs.