Millions of mortgage payers 'unaware of rates'

Posted: 26 Sep 2008 14:23:01 GMT

Nearly five million mortgage holders - approximately a quarter of all fixed-rate borrowers - have no idea about the current interest rate they are paying on their properties.

According to research from mortgage comparison website impartial.co.uk, the average current level of mortgage debt is £87,167, a figure which rises to £98,859 for those with a fixed-rate.

Karen Barret, marketing director of impartial.co.uk, told FTAdviser.com that homeowners who do not know their monthly mortgage outgoings will be unable to monitor their finances and make important decisions in the current climate.

"With the effects of the credit crunch increasing and homeowners tightening their purse strings, it has never been more important for mortgage holders to know exactly what interest rate they are paying," she said.

Those looking to sell a high-end property in order to reduce their mortgage payments may find it difficult to do so in the next several months.

Earlier in September, investment specialist The Buying Solution claimed that, because of the unfavourable market conditions, only those affected by "debt, divorce or death" are currently putting their high-end properties up for sale.

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