When the Interest rate increases as per table below say in 2 years of loan, the full amount of loan will remain unpaid, in spite of paying all instalments all the years.
| Compounded Annually | Repaid Weekly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.67% | 7.28% | 8.25% |
| 5.50% | 7.06% | 7.66% | 8.62% |
| 6.00% | 7.47% | 8.05% | 8.99% |
| 6.50% | 7.90% | 8.45% | 9.37% |
| 7.00% | 8.33% | 8.87% | 9.77% |
| 7.50% | 8.77% | 9.29% | 10.17% |
| 8.00% | 9.22% | 9.72% | 10.58% |
| 8.50% | 9.69% | 10.16% | 10.99% |
| 9.00% | 10.16% | 10.62% | 11.42% |
| 9.50% | 10.64% | 11.08% | 11.86% |
| 10.00% | 11.13% | 11.55% | 12.30% |
| 10.50% | 11.63% | 12.02% | 12.75% |
| 11.00% | 12.14% | 12.51% | 13.21% |