UK homeowners have 'considerable lack of knowledge about mortgage products'

Posted: 05 Mar 2010 09:44:29 GMT

Homeowners in the UK have a considerable lack of knowledge about mortgage products, according to one expert.

Ray Bulger, senior technical manager at mortgage advisor John Charcoal, says that because of this, many people are missing out on better home loan deals, which could actually save them money.

His comments come in response to new research from the Post Office, which reveals that at least three million borrowers in the UK have no idea what rate of interest they are paying on their mortgage.

Mr Bulger believes that this figure is in fact a "gross underestimate" and actually half of all mortgage holders do not know what rate they are paying back.

He attributes this to the fact that many homeowners see their mortgage as a "means to an end".

"They are not overly interested in the mortgage; what they are interested in is buying their house and the mortgage is something they have to have to buy the house," he states.

According to the latest Lending to Individuals report from the Bank of England, total net lending to individuals rose by £2 billion in January.

© Houseladder Ltd