Lack of mortgage cost awareness 'a worry'

It is worrying how many people are missing out on cheaper mortgage rates through ignorance over their current repayment costs, according to one expert.

Ray Boulger, senior technical manager at mortgage adviser John Charcol, said many consumers have no idea what their current rate is, nor when their deal finishes.

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

Mr Boulger commented that people on standard variable rates are less likely to know what they are paying than fixed-rate customers.

"All the evidence suggests that the average person sees their mortgage as a means to an end," he added.

They are not overly interested in the ins and outs of their mortgage when buying a house, he claimed.

Earlier this week, Post Office Mortgages reported that just 72 per cent of mortgage customers are aware of how much they are paying.

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2010-03-05 14:28:45 © Moneyextra.com