Homeowners could find that cutting their home insurance costs will offset any hike in their mortgage repayments brought about by the base rate rise, an insurer has claimed.
Home insurance provider Tesco Personal Finance noted that many borrowers could find that their mortgage costs rise by around £25 per month, after the Bank of England raised the interest rate to five per cent.
However, homeowners are paying too much for their home insurance, with many able to save cash by switching, the company asserted.
A recent study conducted by the organisation found that 25 per cent of respondents were paying around £75 too much for their home insurance.
Allan Burns, head of insurance at Tesco Personal Finance, commented: "Many consumers are apathetic about their home insurance or believe it is an integral part of their mortgage."
He added that many respondents in the study were "shocked" to discover the savings they could make by switching home insurance provider.
Earlier this year, director of insurance at Moneysupermarket.com Richard Mason warned it is "imperative" that Britons shop around to find the best deal on their car insurance.




