Borrowers 'need to know interest rates'

By Jonathan Dawes, Fri 5 Mar 2010 - Published in Mortgages

More people than previously thought may not be aware of the interest rate applied to their mortgages, an expert has suggested.

Recent research from the Post Office found that 28 per cent of borrowers do not know their mortgage interest rate.

Commenting on the findings, John Charcol senior technical manager Ray Boulger said the true figure could be much higher, as his company's research found more than half of borrowers do not know what rate they are paying.

"In general I would say that there is a considerable lack of knowledge about people's specific mortgage products," he added.

Mr Boulger also claimed that people need to become aware of more than just interest they are paying and recommended they investigate any repayment charges which apply when their deal ends.

Furthermore, the expert said an increased awareness of financial products will be beneficial to customers when they look at new products, as they will be able to understand which are the best deals.

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