Millions are unaware of their mortgage rate - Mortgages - News - Moneyfacts

News

Millions are unaware of their mortgage rate

Millions are unaware of their mortgage rate

Category: Mortgages

Updated: 14/12/2012
First Published: 03/03/2010

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 It is now over 6 months old so the content may be out of date.
Over three million homeowners are unaware of the rate of interest which they are currently paying on their mortgage.

Over a third (35 per cent) of borrowers are currently repaying their home loan at their lender's standard variable rate (SVR), possibly in the belief that they are enjoying the lowest repayments on offer, according to Post Office Mortgages.

Some 29 per cent of those on a SVR do not know what their mortgage rate is, however, and are only assuming that their current rate is the best available to them.

For many currently sitting on their lender's SVR, preferable rates could be found elsewhere.

"Although it might seem that staying on your current SVR is the easiest thing to do, you are much more vulnerable to interest rates," commented Marco Hughes, director of Post Office Personal Lending.

"Some providers have increased their SVRs quite significantly even though the Bank of England base rate has not moved and as a result many borrowers are seeing their monthly mortgage repayments increase more quickly than they thought.

"If you're thinking about switching mortgage, now is the best time to do it, before rates rise further."

In addition, figures showed that almost half (49 per cent) said they thought their current mortgage included a facility that allows them to overpay, but were choosing not to take advantage of the opportunity.

Find the best mortgage for you - compare Best Seller 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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!
 
Close