Research by Which? Mortgage Advisers have revealed that 32% of mortgage holders have no idea what interest rate they are paying, despite widespread speculation that interest rates are set to rise, potentially increasing their repayments.
Out of those who did know the exact rate that they are paying, 89% felt informed about the impact that a potential interest rate rise could have. This fell to just 58% for those who didn’t know their mortgage rate.
Being informed about interest rates is key, as there has been widespread speculation about a potential interest rate rise in 2016. Many lenders are capitalising on this; offering fixed-rate deals for consumers, which now makes up 77% of the total products on the market.
Whilst these interest rates are low, there has been a surge of interest from households who are looking to beat the rise.
David Blake, Which? Mortgage Advisers commented: “It’s important to remember that fixed-rate deals typically have higher rates than trackers – for the time being at least – but fixing now could potentially save you money in the long-term. Now is the time to seek independent mortgage advice if you are concerned about the impact a rate rise might have on your finances.”
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