Brits out of touch with their mortgage arrangements

This week marks the third anniversary of the all-time low UK interest rates set by the Bank of England, and homeowners are being urged to review their mortgage arrangements.

If you are a homeowner, or are currently trying to get on to the property ladder, you can compare mortgages with Money Expert.

Research has found that just under half of all borrowers in the UK have not reviewed their mortgage arrangements since the last interest rate change three years ago.

As the third anniversary of the historic base rate change approaches, a number of high street banks and lenders have announced plans to increase their rates ñ affecting thousands of customers.

Experts are urging customers to seek professional mortgage advice, and find out if they are getting the best mortgage deal.

ìIf the recent decision by Halifax and RBS to increase their SVR is an indication of the direction of the market then we will see more increases to the rates that consumers are paying on their mortgages – making it more important than ever for people to shop around for a better deal,î said Karen Barrett, Chief Executive of advice website Unbiased.

Research by Unbiased has revealed that more than half of borrowers donít have any idea what rate they pay on their mortgage.

As well as this, 42% of those who do know their mortgage rate are still paying a rate of 5% or higher on their fixed rate deals.

This is compared to some of the best buy rates on the market at the moment ñ currently at 2.54%, which could mean a difference of more than £150 per month on mortgage repayments.

ì14% of mortgage borrowers now say that because the base rate is so low, they won’t be reviewing their mortgage at the moment,î added Ms Barrett.

ìBut that could mean they are missing the opportunity to make substantial savings on their mortgage payments.î

You can compare mortgages with Money Expert.

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