Mortgage borrowers need to get savvy, says Moneyfacts
Personal finance company Moneyfacts has revealed that many mortgage borrowers are extremely badly-informed about the repayments they are making.
A survey by the company has shown that, while 86 per cent of borrowers are aware of how much their mortgage repayments are, almost a third of them do not know the rate of interest they are paying.
The research also suggests that many borrowers are paying over the odds - in the last three years only 53 per cent of mortgage holders have transferred their loan to a cheaper provider.
"It is worrying that many consumers do not know much detail about their mortgage and that so few people have changed their mortgage for some time - showing how many will probably be on their lenders' standard variable rate," Emma Butler, Moneyfacts web editor, stated.
She added :"With mortgage balances being so high the potential savings of changing to a better deal can be thousands of pounds."
Many mortgage borrowers also seemed unlikely to take professional advice about their loan- almost half those polled said they hadn't or wouldn't consider consulting an independent financial adviser about their mortgage.Get informed about mortgages by clicking here.
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