Brits `unaware of mortgage details`

1 October 2008

Despite the personal finance concerns facing people as a result of the ongoing credit crunch, many UK consumers lack an awareness of the details of their home loans, it has been suggested.

According to figures produced by Norwich Union, 72 per cent of people surveyed do not know whether the mortgage they have is a tracker, fixed-rate or variable product.

It was also found that 67 per cent don`t know how much their monthly mortgage payment is, while 78 per cent do not know the interest rate being charged on their home loan.

In response to the findings, independent financial expert Alvin Hall said: "In difficult economic times like today, it`s crucial that each of us understands exactly where every penny of our pound is going."

He added that budgeting blindly is a "high risk strategy", potentially leaving consumers facing debt problems.

In other mortgage news, figures released last month by Fairinvestment.co.uk suggested that it could take as long as 15 years for first-time buyers to save enough for a deposit on a property as a result of the increasingly strict lending criteria they face.

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