Over 3 million don`t know interest rate on their mortgage

4 March 2010

According to research by Post Office Mortgages, despite the Bank of England`s base rate staying at 0.5% for a year, over three million (28% of) UK borrowers don`t know the interest rate they are being charged on their mortgage, headlinemoney.co.uk reports.

Just over a third (35%) of borrowers are currently making payments towards their mortgage at their lender`s Standard Variable Rate (SVR), yet just under a third (29%) of these are unaware how much interest they are being charged.

The findings also revealed that 49% believe they are in a position to overpay their mortgage, but are not taking advantage of this facility at the moment.

Personal Lending Director at the Post Office, 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."

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