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Do you know enough about your mortgage?

Do you know enough about your mortgage?

Category: Mortgages

Updated: 09/07/2010
First Published: 09/07/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
UK homeowners who are not on top of their mortgage could be in for a shock when interest rates start to rise.

The Bank of England might have kept the base rate at its record low of 0.5% for sixteen months in a row, but when the Bank finally decides it is time for a change, the only way is up.

Yet research conducted by the Consumer Financial Education Body (CFEB) found that three quarters of mortgage holders do not know how an interest rate rise of one percentage point could affect their monthly outgoings.

One in seven (15%) mortgage holders do not even know what type of interest rate they are paying on their mortgage - whether it is a fixed, standard variable, tracker or discounted rate.

A similar number do not know when their mortgage deal expires, while more than half (54%) who have a mortgage deal have no plans to review their mortgage situation, or will leave it to the last minute.

"Interest rates have been at record lows for some while now," said Tony Hobman, CFEB Chief Executive. "Although there is uncertainty about when this will change, it is clear from our research that many people with mortgages haven't thought about what it would mean for their monthly payments, or where they would find the extra money in their household budget if their mortgage rate was to go up.

"Lack of time means many of us often put off reviewing our finances, but it doesn't have to be time consuming to keep on top of your money matters."

If you're thinking of reviewing your mortgage situation, why not check out our best selling mortgage deals?

Amongst the best two year fixed rate mortgages currently available is a deal from HSBC at 2.99%.

Or, if you're interested in a variable rate mortgage, first direct is offering a deal at 2.39% for term, while ING Direct offers a rate of 2.84% for the term.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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