Over 3 million UK borrowers don’t know their mortgage rate
Over a third (35 per cent) of borrowers are currently repaying their mortgage at their lender’s Standard Variable Rate (SVR), possibly because they believe that they are on the lowest monthly repayments on offer. Yet nearly a third (29 per cent) of these do not know their mortgage rate, and are only assuming that their SVR is the best rate for them. In reality there could be a much lower rate available elsewhere. Furthermore, 49 per cent believe they can overpay but are not taking advantage of this facility at present.
Post Office personal lending director Marco Hughes said: “Although it might seem that staying on your current SVR is the easiest thing to do, you are much more vulnerable to interest rate rises. 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. With many SVRs at or above 4% there are already better deals to be had out there. Switching mortgage does not have to be a stressful experience and spending a bit of time searching and comparing deals could save you a significant amount of money in the long term.”
Post Office Mortgages recently announced improved rates across its 80% LTV and 60% LTV range of mortgage products and has also launched a new range of 75% LTV mortgages, all these include base rate trackers, two, three and five year fixed rate deals. All Post Office Mortgages come with a low fixed arrangement fee of £599 while the tracker products offer low revert rates linked to the Bank of England base rate.