Millions of UK Homeowners unsure of the rates they are paying

Article source:

homeowners unsure of mortgage rates

In the boom period we have experienced over the last ten years many millions of UK homeowners were, and even now, in what appears to be the start of a recession, continue to be far too relaxed about their monthly mortgage repayments. They were very confident that in a rising market, property prices would continue to rise and they would reap the benefits.

It has now become apparent that a large proportion of UK homeowners are unaware of the rates of interest that they are paying out on with their current mortgage deals. As the market has turned many are now facing a poorer economic future so this attitude to their financial future can not be kept up and it is imperative that they pull their socks up.

In reality this probably also implies that they do not know:-

  • How much their monthly mortgage payments are (unless they consult their bank statements on a regular basis).
  • How much equity they have in there house.
  • How long there is left on their fixed term.
  • Or, if they are on a variable rate, what the current rate is.

A report released by revealed this startling news; one in four fixed rate borrowers do not know what the interest rate is on their home loan.

At this time especially, banks, building societies and financial institutions, like the Bradford and Bingley, The Yorkshire Building Society, Nationwide and GMAC are reporting tough trading conditions. The Bradford and Bingley and GMAC are also facing significant problems with their mortgage books related to late payments arrears and the collection of those late payments.

Marketing Director of warned that the current attitude of UK homeowners will soon make this attitude unsustainable as their household spending budgets will be reduced.

“Getting the best mortgage advice in the current environment can be vital,” Barrett warned the

She continued: “turbulent market conditions look like they are set to continue,” and advised that UK homeowners seek good advice from impartial mortgage advisers.

Many UK Homeowners may have come to the end of the fixed term period on their mortgages and now need to take time out to:

  • Check the variable rate that they are on with their current mortgage deal.
  • Ask themselves the question, does the mortgage deal I am currently on represent good value for money?
  • If the answer is no, search the mortgage market for a two year fixed rate deal and if they find one, apply as soon as is reasonably possible.

Many of the best products are being removed from the mortgage market on a daily basis. For that reason it is extremely important and imperative for UK Homeowners to begin to act very quickly. We are, as it has been widely reported at the start of an economic and financial situation that looks very likely to continue for the foreseeable future; indeed some UK analysts believe it will continue until at least the end of 2010 or even into 2011. The best way to do this would probably be to consult an independent mortgage advisor or independent financial advisor; some of them often offer free mortgage reviews. These free mortgage reviews will give you accurate information about your current mortgage as well as present the best mortgage deals that are presently available in the mortgage market.