Borrowers in the dark about mortgage rates

A number of mortgage customers in the UK are completely unaware of the interest rates on their loans, new research has shown.

Figure recently published by the Post Office have revealed that at least three million British borrowers do not know the rate they are currently paying.

The report also revealed that 35 per cent of borrowers are currently paying their lender's standard variable rate in the belief that they are the lowest monthly repayments on offer.

However, Ray Boulger, senior technical manager at independent mortgage adviser John Charcol, said the Post Office figures represent a "gross underestimate" of the number of people who are unaware of their interest rates."I would have said that it was more than half, judging by the response when we ask clients what rate they are paying. It is surprising how many don't know what their rate is," he said.

Mr Boulger explained: "It is not only the interest rate that people should be aware of, it is also when their current deal finishes, what their repayment charge situation is and very often we actually have to ask clients to check up on that because they don't know off the top of their heads."

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