One in three homeowners don’t know
A recent survey by Which? showed that just one third of borrowers knew their mortgage rate. Another one third didn’t know the rate they were paying, and this impacted how confident they felt about their mortgage decisions. With everything financial, it pays to be informed. Do you know your mortgage rate and if the type of mortgage is best suited for your requirements?
The benefits of knowing your mortgage rate
From a survey of over 5,000 homeowners, just 32% knew specific details about their mortgage, like the interest rate.
The same group were asked if they felt informed about the impact of a rise in interest rates. 89% of those who knew their rate also felt they were informed about their options.
Only 58% of the third who didn’t know their rate, felt informed about any rate rise.
This demonstrates that taking an active interest in your finances, could allow you to better prepare for future eventualities as well as, in the long-term, save money.
Fixed-rate versus Tracker mortgages
With the wide range of fixed-rate mortgages available, many borrowers have been securing low rates to retain a set amount for future mortgage repayments.
Tracker mortgages can still work out cheaper in the short-term though, so it is important to work with an independent mortgage adviser who can help ensure you know all the options, and are aware of your interest rate now, and, what it would be subject to a rate increase, which is still being speculated for 2016.
Dental & Medical Financial Services are specialist mortgage advisers for doctors and dentists. Call Chris today to discuss your mortgage requirements.