A third of borrowers don’t know their mortgage rate
One in three borrowers are totally in the dark over their mortgage interest rate, according to research from Which? Mortgage Advisers.
And only a third were sure of their exact interest rate, despite the fact that a rate rise has been the subject of intense media speculation during 2015.
Of those who did know what rate they pay on their mortgage, a massive 90% were knowledgeable about how a potential rate rise would impact their repayments and wider finances.
But of the respondents who didn’t know their mortgage rate, only 58% understood that a rate rise could mean a hike to their monthly repayments, depending on the type of deal they have.
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With widespread speculation about a potential increase in interest rates, more consumers have chosen to take advantage of current low fixed rates. Analysis by Which? Mortgage Advisers also found a 55% increase in the number of fixed rate deals on the market over the past two years, with fixed rate deals now making up three quarters (77%) of the products on the market.
David Blake from Which? Mortgage Advisers said: “With interest rates so low, we have seen a significant increase in the number of fixed rate mortgages available and a surge in households looking to take advantage of these deals ahead of any potential rise.
“That said, it’s important to remember that fixed rate deals typically have higher rates than trackers – for the time being at least – but fixing now could potentially save you money in the long-term. Now is the time to seek independent mortgage advice if you are concerned about the impact a rate rise might have on your finances.”