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 Half Yearly | Repaid Weekly | ||
| Loan Period | |||
| 30 yrs | 25 yrs | 20 yrs | |
| Rate when agreed | Increased to | ||
| 5.00% | 6.56% | 7.15% | 8.09% |
| 5.50% | 6.94% | 7.52% | 8.44% |
| 6.00% | 7.34% | 7.89% | 8.79% |
| 6.50% | 7.74% | 8.28% | 9.16% |
| 7.00% | 8.16% | 8.68% | 9.53% |
| 7.50% | 8.58% | 9.08% | 9.91% |
| 8.00% | 9.02% | 9.49% | 10.30% |
| 8.50% | 9.46% | 9.91% | 10.70% |
| 9.00% | 9.91% | 10.34% | 11.09% |
| 9.50% | 10.36% | 10.78% | 11.51% |
| 10.00% | 10.83% | 11.22% | 11.93% |
| 10.50% | 11.63% | 11.67% | 12.36% |
| 11.00% | 11.78% | 12.13% | 12.79% |