Mortgage borrowers need to get savvy, says Moneyfacts

21 February 2005
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.

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