You are here: Home -

A third of borrowers don’t know their mortgage rate

Written by: Christina Hoghton
Interest rates may be low but a surprising one in three mortgage holders still have no idea what rate they are paying on their homeloan.

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.

Repayments up

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.

Lock your mortgage rate

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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Share Centre stock of the week: Dixons Carphone

Ian Forrest, investment research analyst at The Share Centre, explains why he has chosen Dixons Carphone as stock of the...