Homeowners confused about mortgages rates

A study has revealed that one fifth of homeowners are unaware how an increase in mortgage rates will affect them.

Research from unbiased.co.uk found that 22 per cent of homeowners do not know what would happen to their monthly payments should the base rate rise.

Around 16 per cent of homeowners on their provider's Standard Variable Rate SVR and 18 per cent of those on a Tracker do not think their mortgage rates will necessarily increase by as much as a base rate rise.

"It's vital for homeowners to regularly review their mortgage arrangements to ensure that they are on the best deal for them. Homeowners should seek whole of market mortgage advice to understand what deal they are currently on and when it's the best time for them to move onto a new deal," explained Karen Barrett, chief executive of the advice website.

In related news, Leeds Building Society has today April 11th launched a new shared ownership scheme offering up to 95 per cent LTV mortgages.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2011-04-11 13:00:04 © Moneyextra.com