3m homeowners in the dark over mortgage rates
By myfinances.co.uk staff
Millions of homeowners could be paying over the odds for their mortgage because they do not know what rate they are on, Post Office Mortgages has said.
The lender found that while 35% of borrowers currently have a standard variable rate (SVR) deal on their home loan, 28% - or around three million people - are in the dark about where their SVR stands.
Post Office personal lending director Marco Hughes said despite the Bank of England's base rate standing at a record low of 0.5 per cent, many mortgage providers have increased their SVRs "quite significantly" and as a result, households should not assume they are on the best deal available.
"If you're thinking about switching mortgage, now is the best time to do it, before rates rise further," he commented.
Around 11.1 million households in the UK currently have a mortgage.
Figures published earlier this week by Credit Action showed the average outstanding amount on these loans is £111,474.
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- standard variable rate
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