Homeowners 'should stay in control' of mortgages

Posted: 12 Jul 2010 11:57:48 GMT

Homeowners have been advised to stay aware of their mortgage costs, after many admitted they do not know how much they pay each month.

Mary Graham of the Consumer Financial Education Body explained three-quarters of respondents to a survey by the organisation do not know how an interest rate rise would affect their mortgage.

This is despite more than half expecting the Bank of England to implement an increase in the next few months.

Ms Graham recommended consulting documents containing the key facts about a product - as these will show interest rates - and suggested those coming to the end of a fixed deal should look around for a new one.

"It is in everybody's interest to be in the driving seat," she said. "It is all about being in control – this way we can feel much happier about things."

According to the research, 15 per cent of homeowners do not know whether they have a fixed, capped, collared or tracker mortgage.

© Houseladder Ltd